Belgian financial holding Sofina (Brussels; www.sofina.be) has taken a 17.5% stake in PVC window systems and profiles manufacturer Deceuninck (Hooglede-Gits; www.deceuninck.com) for a mooted EUR 87m. The deal – which comes a year after speculation about a family share sale was kicked off in the Belgian press – reduces the family´s stake to 24.5% from 41%.

Arnold Deceuninck, chairman of the profile manufacturer´s board of directors, said Sofina was the preferred investor because of its "strong industrial and Belgian embedment" as well as its "long term participation in numerous well established companies." He said the share transfer will have no influence on the operating business of the group that employs 3,000 people, including 670 in Belgium.

In connection with the transaction, the family holdings Plastec (25.42% of Deceuninck´s shares) and Dasco (15.59%) are being dissolved. At the same time the family has established two new vehicles, Desco with 17.5% and Defiac with 7%, to represent its interests. Another large shareholder is First Eagle, with 20.04%. The remaining shares are in free float; the operative company holds only 1%.

In the second quarter of 2006, business growth slowed for the Belgian profile manufacturer. Turnover increased by only 1.2% to EUR 172.6m against the strong quarter of 2005. In Q1 2006 sales climbed 13% against the 2005 period. However, turnover in the first half was up 6.5% to EUR 316m. Volume sales in this year´s Q2 rose 6%, propelled by a 20% upturn in central and eastern Europe – whereby Poland´s poor performance was an exception – and healthy demand from Turkey and the Benelux.

The "substantial decline" in the UK window market was the driving force behind the 5% dip in western European turnover in Q2, although German subsidiary Inoutic – formerly Thyssen Polymers – bucked the trend with a 5% improvement. The North American operation increased dollar-denominated sales by 5%, with the upturn in euros exceeding 10%.

Earlier this year, Deceuninck forecast a 5-10% increase in turnover for 2006 – see Plasteurope.com Web of 07.04.2006. To achieve this goal in view of the weakening North American building market and higher raw materials prices worldwide, CEO Clemens De Meersman said the group will rigorously push through its previously announced restructuring project "Business Plan 2009", which foresees improvements in productivity and a reduction in personnel costs. Extrusion activities in Pontivy / France already have been shut down.