May 24 2006
Wienerberger AG (Vienna, Austria) has signed an agreement to acquire Robinson Brick Company (RBC) through its wholly owned subsidiary General Shale and has thereby completed a major expansion step in the western region of the USA.
RBC is a manufacturer of bricks and distributor of high-end masonry products, headquartered in Denver, Colorado. In 2005 the company generated revenues of US$87 million and EBITDA of US$14 million with 505 employees. The investment totals US$88 million plus net working capital as of the closing date (net working capital at year-end 2005 was roughly US$28 million).
“The acquisition of RBC represents an important expansion step. Up to now, our activities in the USA have concentrated entirely on markets east of the Mississippi. This transaction is a great opportunity for a market entry in the western part of the country. RBC is an ideal geographic addition to our US subsidiary General Shale“, commented Wolfgang Reithofer, CEO of Wienerberger AG, on this latest acquisition. “We will also benefit from the product know how of our new colleagues, above all in the areas of building stone and thin bricks, and the related expansion of our product portfolio“, added Dick Green, CEO of General Shale.
Robinson Brick Company was founded in 1880 and previously operated under the majority ownership of F. George Robinson Jr. and management. RBC is a producer and distributor for facing bricks, concrete blocks, building stone, thin bricks and pavers. The company operates a brick plant in Denver with a total annual capacity of more than 100 million brick units, three concrete block factories in Colorado Springs, Cheyenne and Torrington, producing 8 million units per year and 17 distribution outlets in six states (Colorado, Wyoming, Montana, Nebraska, Illinois and Oklahoma).
Under the current and remaining CEO Robert Jaster, the company has pursued an ambitious and highly successful growth strategy in recent years. “We are pleased to have Robert Jaster join our team. RBC has shown significant development under his direction, and Jaster shares our commitment to profitable growth. He is a perfect match for our management team," commented Reithofer.
“We are very excited about becoming a member of the Wienerberger Group," said Jaster. "With the additional financial resources and opportunities afforded by our new owners, we can further accelerate our market expansion and sustain our leading brand identity. Our manufacturing and product innovation capabilities, combined with the strength of the world’s largest brick manufacturer, will enable us to leverage synergies to increase brick and block capacity, and ultimately total market share.”
The combination of RBC and General Shale will create a large number of synergies that both companies can benefit from quickly and efficiently. In the future thin bricks and building stones, which are currently not produced by General Shale, will be sold by the company’s sales and distribution network. “We expect to realize synergies of roughly US$5 million per year from optimization and cross-selling“, explained Dick Green. In addition, RBC is a perfect platform for the expansion of Wienerberger in the western region of the USA and will contribute to a further long-term growth in EBITDA of the company's North American activities.