Elpreco: second-largest construction material deal in 2007

This is the largest transaction in Romania in 2007 and the second of its kind, following the acquisition by U.S. Advent International of brick producer Ceramica Iasi for €35 mln.

Laurentiu Plosceanu, President of the Romanian Association for Construction Entrepreneurs (ARACO), believes that this deal is just the first step in a bigger process. “This will attract direct investments in the coming four years.”

Elpreco’s main shareholder was Broadhurst, an investment fund controlled by businessman Siminel Andrei. Last year, the company’s turnover amounted to €30 mln, with losses exceeding €280,000.

Profit in 2005 was €1.9 mln. Investments in 2004 and 2005 exceeded €12 mln, including the construction of a new factory.

CRH completed another transaction this year, estimated to be worth €174 mln, of Mexican group Cemex, the world’s third-largest cement producer. Acquisitions in 2007 cost some €1 bln, and include Swedish group Getaz Romang, American Paver Systems, and Chinese producer Harbin Sanling.