Talks for the acquisition of Oradea-based Simcor, a construction materials producer, for 80m euros, show foreign investors' appetite for the Romanian market of construction materials, one of the most dynamic in the economy, is high owing to the growth rates of around 30% witnessed by the main sectors: cement, bricks or ACC.
Stache Lutz and Mihai Voiculescu, the main shareholders in Simcor, are now in advanced talks to sell 7 companies part of Simcor group for 80m euros, most probably to AIG US investment fund, through AIG Capital Management. However, giant Xella, the German ACC producer, may also join the race, according to industry information.
"We have received a lot of takeover bids in recent years. The first contacts from investment funds and strategic players came in 2006 and since then we've received bids from 8 investment funds and 3 foreign producers of construction materials. At present, we are in advanced talks with several companies, likely to be finalised next month," Mihai Voiculescu, chairman of Simcor board, told ZF.
Simcor shareholders put up for sale the 7 companies handling construction materials production and the management of firms part of the group: Simcor SA, Simbeton, Simcor Var, Simsped, Simterac, Simcor Management and Simpromat. Another 2 firms of the group, Ceramica International and Sanimix, distributing ceramic tiles and sanitary ware, will be kept.
Simcor Oradea last year generated turnover worth above 75m euros, up 25% year-on-year. Moreover, the group in 2007 carried out 6m-euro investments to install the gas system at the furnace of the lime plant of Medgidia, to acquire an automated line for ACC packaging, boost production capacities, purchase new cars and equipment and expand the truck fleet.
Simcor sells construction materials through its own distribution networks.
The rising investments on the r
