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ots Ad hoc-Service: Wienerberger Baustoffind. <AT0000831706> Wienerberger announces acquisition of Cherokee Sanford in the USA

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announcement.
General Shale, US subsidiary of the Wienerberger Group has signed
a definitive agreement to acquire the Cherokee Sanford Group LLC.
Cherokee Sanford holds a share of 5% in the US brick market and is
the sixth largest brick producer in the United States. The Company is
market leader in the growth markets North Carolina and Maryland and
operates 5 facing brick plants. The purchase price for this
acquisition is USD 81 million (debt free), with closing scheduled for
January 2000.
The 5 Cherokee Sanford plants have a total annual capacity of 375
million US-brick units and 687 employees have recorded consolidated
sales of approximately USD 81 million and EBIT of more than USD 10
million in 1999. The company's strength is based on its excellent
geographic location. Strong growth in housing construction is
forecasted for the Southeast region also over the coming years.
Cherokee Sanford sells the major part of its brick products through a
direct marketing system, which leads to good margins.
Cherokee Sanford is the optimal partner, both from the standpoint
of size and synergy in the areas of market, plant structure and
organization. The market presence of General Shale in North Carolina
has been low to-date. The centralization of administrative and sales
activities will lead to significant cost reductions and enhance
earnings.
For further information please see Wienerberger's press release.
Wienerberger Baustoffindustrie AG The Managing Board
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