The world of business has seen a rush of very high value mergers and acquisitions over the past couple of weeks. Recently Dell went out and purchased data storage company EMC for a wallet-weighing $67bn. Then, in the world of alcohol and brewing, AB InBev made a move for SABMiller for a staggering $130bn – giving the proposed new group a value of $275bn.
Then, at the end of last week back in the world of fenestration, one of our biggest companies, Roto Frank AG, made a move for global construction supplier Deventer Group. With a turnover of 641m euros in 2014 and employment of over 4500 staff, this is a big one.
The press release
Here is the statement released by Roto Frank on their website:
Roto Frank AG is continuing to drive the consistent expansion of its overall window and door technology expertise with the acquisition of the Deventer Group. The global construction supplier, which stated 2014 turnover at more than 641 million euros with 4,500 employees, reported that the takeover would take effect from 1 January 2016. Deventer is one of the leading specialists in sealing profiles manufactured from TPE (thermoplastic polymers) for windows, doors, gates, frames and glazing. The investment is of strategic importance as it “ideally complements” the current Roto portfolio.
The acquisition, with required consent from the antitrust authority still pending, includes all the companies of the decentralised Deventer Group, explains Dr Eckhard Keill. According to the chairman of the Roto Frank AG board of directors, this includes the German company with its founding site in Berlin-Spandau as well as independent companies in the Netherlands, Poland and Russia. The jobs of the around 160 staff members in total employed by the seal manufacturer are safe. The same applies for the brand name, which is firmly established in the industry and is renowned for its high quality, innovation and performance level.
The parties have agreed not to disclose the purchase price. As Keill emphasizes, Roto does not require any additional external funds to finance the commitment. This reaffirms the company’s economic strength, which deserves to be stressed given the current critical market situation in a number of core regions. Chief Financial Officer Michael Stangier states: “The fact that we can realise important acquisitions in such a phase is further concrete evidence of stability for our customers.”
The integration of the new group member into the Roto network will take place in a similar fashion to the acquisitions completed in the past few years – “concentrated, but without time pressure”. Deventer is also “in great health” and offers good prospects, such as for the development of additional or as yet unexhausted market potential. Future seamless continuity and reliability will also play a key role for the sealing profile expert’s business partners. The product and service range will remain in place as well the current administration, technology and sales contact partners. “Established customer relationship reinforcement and expansion are an absolute priority”, Keill points the way forward.
Although details about the amount of money spent on the acquisition have not been released, with a company turnover of 641m euros, you can expect the amount of cash to swap hands would be a large amount. Maybe not Dell or AB InBev amounts though!
The deal isn’t quite done though. The competition commission is still to give the merger the green light. These things usually go through though and I would expect that come New Years Day the deal will be done and the Roto group will get a whole lot bigger.