Pfleiderer AG has announced a €212m takeover of Kunz Group’s engineered wood business.
The agreement, which still needs approval from competition authorities, follows months of negotiations between the two companies.
Pfleiderer said the purchase will make the company “even more of a global player” in the system supply of engineered wood for the furniture industry and interior design. The firm also gains access to the laminated flooring market, through Kunz’s subsidiary Uniboard Canada Inc.
Kunz’s engineered wood business, which includes particleboard and MDF production, achieved global sales of €556m in 2004.
It produces around 750,000m3 of raw particleboard at Ebersdorf and Gschwend, while at Baruth, in which Pfleiderer will take a minority shareholding, the output is about 450,000m3 of MDF/HDF.
North American subsidiary Uniboard contributes about two-thirds of Kunz’s group sales and operates at nine sites producing raw chipboard, MDF, laminate flooring and other surface-finished products.
Pfleiderer, whose own engineered wood sales were €760m in 2004, will merge its business with the Kunz operations under the Pfleiderer Engineered Wood banner. It is aiming for combined sales of around €1.4bn in 2006.
Pfleiderer CEO Hans Overdiek is expecting dynamic growth in North America and eastern Europe and considerably higher margins than in Germany.
Pfleiderer’s acquisition will also include taking over financial net debts of about €267m.
