Sep 13 2006
The Wavin Group, leading supplier of plastic pipe systems and solutions in Europe, has signed a Memorandum of Understanding with Aristovoulos G. Petzetakis S.A. to acquire its Greek business related to the production and sales and marketing of plastic pipes and fittings. The purchase price for this acquisition is EUR 60 million of which EUR 5 million will be paid if certain financial targets are achieved in 2006 and 2007.
The completion of the transaction is subject to certain conditions, including completion of due diligence, the respective corporate approvals of the parties (including the approval of the transaction by Petzetakis shareholders), all necessary regulatory approvals and consents, and the execution of certain documentation required to give effect to the transaction. Subject to the satisfaction of these conditions, Wavin would expect to complete the transaction in the first quarter of 2007.
Petzetakis is the market leader in the pipes and fittings market in Greece where it has a strong brand presence. In 2005, the turnover of the Greek pipe business to be acquired was slightly over EUR 60 million. The acquisition of Petzetakis' Greek pipe activities would broaden the geographical scope of Wavin’s business and enhance its position as the leading supplier of plastic pipe systems and solutions in Europe.