Etex finalises its strategic shift to become a global leader in lightweight building solutions with the divestment of Creaton
Zaventem, 22 October 2020 – Terreal, a French pioneer in roofing and innovative solutions for the building envelope, has signed a definitive agreement with Etex to acquire its roof tile business Creaton. This divestment marks Etex’s complete exit from the clay and concrete roof tiles business. As a result, Etex sharpens its strategic focus on becoming a global leader in lightweight building solutions. The sale of Creaton is subject to customary closing conditions and is expected to be finalised in the first quarter of 2021.
Creaton was founded in 1992 and acquired by Etex in 2005. Employing 1,250 people, the group operates 12 production sites that manufacture roof tiles and components for markets in Germany, Poland, Southeast Europe and the Benelux. The company currently ranks number one in both Germany and Poland for clay tiles, and number two in Hungary and Southeast Europe.
Terreal, Creaton’s buyer, has over 150 years of experience in the production of terracotta building materials and specialises in four domains: roofing, solar, structure and façade & decoration. Terreal employs over 2,000 people at 23 sites in France and around the world.
Etex achieves a key strategic milestone
With the sale of the Creaton business, Etex concludes a strategic shift initiated two years ago when the group redefined its ambition to become a global player in lightweight, sustainable, cost-effective, quality-focussed building technologies. As it is based on a non-lightweight technology, the clay and concrete roofing tiles business no longer aligns with Etex’s vision of the future.
The group has executed on its strategy by selling four businesses since last year: Umbelino Montiero (Portugal), Marley Ltd (United Kingdom), Marley South Africa and its 50% stake in RBB NV (Belgium). The divestment of Creaton is the fifth and final step in this process.
A win-win operation for Etex, Creaton and Terreal
Creaton and Terreal are strongly complementary in terms of product range and geographical footprint. Moving forward, Creaton will play an important role in Terreal’s strategy. The new industrial group formed following the acquisition of Creaton opens up numerous new opportunities for international growth.
Comment from Paul Van Oyen, CEO of Etex: “We are pleased that with this transaction, we can conclude the execution of the Etex group’s strategic reorientation. As a result, we will now focus entirely on developing and delivering products and solutions for lightweight construction. The different clay and concrete tile companies of Etex which have been divested since last year have been positioned with new parent companies that will further contribute to the consolidation and development of strong roofing players in Europe and beyond. The same can be said today about Terreal’s acquisition of Creaton, and we firmly believe that our colleagues of Creaton are in good hands to deliver on their ambitions together with a strong parent company. We warmly thank all Creaton employees for their engagement and excellence throughout all these years. We wish them all the best.”
Lazard is acting as lead financial adviser and Freshfields as legal adviser to Etex in connection with this transaction.