Company Announcement Uponor divests its German OEM unit
Uponor Corporation Stock Exchange Release 24 January 2012 15.00 EET
Uponor divests its German OEM unit
Uponor (Deutschland) GmbH, member of the Uponor Group has today signed a contract to divest the entire share capital of Hewing GmbH, Uponor's non-core OEM unit based in Ochtrup, Germany. The buyer is Rettig Germany GmbH, a member of the Finnish heating technology manufacturer Rettig Group.
The deal, at a value of €11.9 million, leads to an impairment write-down of €10.5 million for the financial year 2011, impacting the operating profit of continuing operations. For this reason, Uponor's full-year operating profit for 2011 will remain clearly below the previous year's level.
In 2011, Hewing GmbH generated net sales of nearly €50
million, and employed a staff of 230 persons. Operating under
its own brand name, Hewing has served as an OEM pipe
manufacturer to various central European underfloor heating
and plumbing system brands. Hewing's PEXc pipe technology has
been non-core for Uponor after the global brand realignment
in 2006, resulting in a stronger focus on the Uponor
multi-layer composite and PEXa pipe technologies in building
solutions.
Uponor's CEO Jyri Luomakoski comments on the deal:
- The business environment for OEM manufacturing has
weakened in Europe in recent years, and the evolution was
speeded up by the difficult market conditions in the past
few years. This has severely impacted performance, with
little room for improvement in the current
setup.
-
We are happy to have found a buyer who can bring a
considerable own volume to Hewing. I believe this is a
favourable move for the entire industry that is faced with
idle capacity especially in central Europe. I trust the
deal will bring optimism about the future amongst the
personnel of Hewing.
- The deteriorating performance of Hewing in the recent years has had a notable impact on Uponor's consolidated results. In addition to operating profit, the divestment will have a positive impact on our future cash flow from operations and gearing.
The deal is effective 1 January 2012, pending on certain factors, such as an approval from competition authorities. The closing of the deal is expected to take place in March-April 2012.
Uponor will continue to have a presence in the Ochtrup region where it has some warehousing, administration and marketing services related to the PEXa technology-based business under the Uponor brand.
Uponor acquired Hewing GmbH in early 1988 as its first step in the strategy to enter the growing market of hot water pipe systems for buildings. Hewing's advanced know-how of cross-linked polyethylene pipe (PEXc) technology and its access to new customer segments in Germany have played a key role in Uponor's journey towards its leading international position as a supplier of building solutions in Europe and North America.
For further information, please contact:
Jyri Luomakoski, President and CEO, tel. + 358
20 129 2824
Riitta Palomäki, CFO, tel. + 358
20 129 2822
Uponor Corporation
Tarmo Anttila
Vice President, Communications
Tel. +358(0)20 129 2852
DISTRIBUTION:
NASDAQ OMX Helsinki
Media
Uponor is a leading international provider of plumbing and indoor climate solutions for residential and commercial building markets across Europe and North America. In Northern Europe, Uponor is also a prominent supplier of infrastructure pipe systems. Uponor offers its customers solutions that are technically advanced, ecologically sustainable, and safe and reliable to own and operate. The Group employs approx. 3,200 persons, in 30 countries. In 2010, Uponor's net sales totalled €750 million. Uponor Corporation is listed on NASDAQ OMX Helsinki in Finland. .
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