WAVIN
Acquisitions in Czech Republic and France / 1996 net profit up 75% / Focused on pipes
Wavin BV (Stationsplein 3, NL-8000 AD Zwolle), Europe's largest plastic pipe manufacturer, has recently made two acquisitions to expand its role in Eastern Europe and strengthen its share of the European building sector. The company has taken over the remaining 51% share in the Czech water and gas pipe manufacturer Dancco s.r.o (CZ-Havirov). It originally acquired a 49% stake in 1992. Wavin intends to merge this company with its existing sales and distribution company in the country, Wavin s.r.o. (CZ-Jihlava).
At the same time Wavin's French company, Wavin S.A. (Tour Eve, La Defense 9, F-92806 Puteaux) has taken over Climasol S.A. a manufacturer of hot and cold water systems for the building sector, particularly underfloor central heating applications. The French company employs 15 people and had sales of NLG 12m in 1996.
These moves are part of an ongoing process of restructuring within the group to become a focused plastic pipe manufacturer. In addition to acquisitions it has also divested several non-core operations as well as restructure some of its existing European pipe activities. These developments helped contribute to a 75% improvement in net profit for 1996 to NLG 37bn (from NLG 21bn in 1995).
Wavin's consolidation of its activities and the building recession in some European countries led to lower sales volumes which finished the year at 395,000 t compared to 430,000 t in 1995. For the same reasons group sales were down to NLG 1.64bn (NLG 1.95bn). The company reported strong performance in the Netherlands, UK, Ireland and Scandinavia, but severe price competition due to recession in Germany, Switzerland, Italy and Spain slowed down recovery in these markets. Eastern Europe was an important growth factor for the company. It increased its shareholding in its Polish subsidiary and a good start was made at its recently acquired and modernised factory near Vilnius, Lithuania.
Except for some of its smaller market sectors, Wavin does not anticipate any significant increase in sales volume during 1997 and margins will remain under pressure. However, the company hopes productivity measures and geographical expansion, particularly outside Europe, will further improve net profits during 1997.
At the same time Wavin's French company, Wavin S.A. (Tour Eve, La Defense 9, F-92806 Puteaux) has taken over Climasol S.A. a manufacturer of hot and cold water systems for the building sector, particularly underfloor central heating applications. The French company employs 15 people and had sales of NLG 12m in 1996.
These moves are part of an ongoing process of restructuring within the group to become a focused plastic pipe manufacturer. In addition to acquisitions it has also divested several non-core operations as well as restructure some of its existing European pipe activities. These developments helped contribute to a 75% improvement in net profit for 1996 to NLG 37bn (from NLG 21bn in 1995).
Wavin's consolidation of its activities and the building recession in some European countries led to lower sales volumes which finished the year at 395,000 t compared to 430,000 t in 1995. For the same reasons group sales were down to NLG 1.64bn (NLG 1.95bn). The company reported strong performance in the Netherlands, UK, Ireland and Scandinavia, but severe price competition due to recession in Germany, Switzerland, Italy and Spain slowed down recovery in these markets. Eastern Europe was an important growth factor for the company. It increased its shareholding in its Polish subsidiary and a good start was made at its recently acquired and modernised factory near Vilnius, Lithuania.
Except for some of its smaller market sectors, Wavin does not anticipate any significant increase in sales volume during 1997 and margins will remain under pressure. However, the company hopes productivity measures and geographical expansion, particularly outside Europe, will further improve net profits during 1997.
15.06.1997 Plasteurope.com [19319]
Published on 15.06.1997