Buderus Giesserei Wetzlar GmbH/TRM AG (Germany) - Dec 2007

unquote
01 December 2007

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Buy_Out Central Europe II Beteiligungs-Invest AG has acquired a majority stake in German Buderus Giesserei Wetzlar GmbH and Austrian Tiroler Röhren- und Metallwerke AG for an undisclosed amount. The 50% stake in both companies will be held by an Austrian company, of which the name has yet to be announced. The vendor, Buderus Foundry Management S. ar. L, which is owned by Orlando Management, keeps 25.1% of the company, with the remainder in the hands of other investors. The closing is expected by the end of 2007.

The deal was sourced through an auction run by Jefferies International Limited. The investor intends to expand the company’s international business, with additional opportunities perceived especially in Eastern Europe, where EU funding will be used to improve the drinking water infrastructure and replace obsolete piping in the new EU member states. The investor might open another production plant in Russia. The new company’s flotation on the stock market in the next few years is not ruled out.

Company

The cast steel sector of Buderus Foundry Management encompasses the Buderus Giesserei Wetzlar GmbH in Germany, the Tiroler Röhren- und Metallwerke AG (TRM) in Austria, the Buderus litinové systémy s.r.o. in the Czech Republic, as well as the distribution companies in the United Arab Emirates and the US.

Buderus Giesserei Wetzlar GmbH and Tiroler Röhren- und Metallwerke AG are described as European market leaders for specialty pipes for drinking water, pipe systems for snow-making equipment and for foundation piles.

Tiroler Röhren- und Metallwerke AG (TRM) was founded in 1947 and employs around 200 people. TRM reported a turnover of E65.5m in 2006, down from E77.3m in 2005.

Buderus Giesserei Wetzlar GmbH employs 441 people and reported a turnover of E109.4m. Pipe production in Wetzlar started in 1901.

Advisers

Equity - Deloitte Österreich, Mag Martin Feige (Financial Due Diligence)Equity - Kanzlei Prochaska Heine Havranek Rechtsanwälte, Daniela Olbrich, Dörk Pätzold, Stefan Prochaska (Legal)

Sourced from: Deutsche unquote" 94 (Jan 2008)