H+H has closed its acquisition of Grupa Silikaty Sp. z o.o. in Poland

Company Announcement No. 357, 2018

?H+H Polska Sp. z o.o. has today closed the acquisition of 99.19% of the shares in Grupa Silikaty Sp. z o.o., cf. company announcement no. 349 of 7 July 2017.

The acquisition of the Polish calcium silicate business is in line with the announced strategy of transforming H+H into a leading wall-building materials group and strengthening H+H’s position in the residential high-rise segment.

As previously announced, the purchase price is approximately DKK 64 million (enterprise value). The purchase price will be paid according to an agreed payment schedule where approximately DKK 14 million was paid today and the remaining amount will be payable in two instalments each of approximately DKK 25 million by the end of January 2019 and 2020, respectively.

Annual synergies of more than DKK 10 million are expected from the transaction when fully implemented in 2020.

Transaction and restructuring costs are expected to be in the region of DKK 5 million due in 2018. The amount will be treated as a special item. There are no changes to the financial outlook for 2018, cf. company announcement no. 355 of 14 March 2018.

Kent Arentoft                                               Michael T Andersen

Chairman of the Board of Directors            CEO

For further information please contact Michael T Andersen, CEO, or Bjarne Pedersen, Vice President, Business Development & IR, on telephone +45 35 27 02 00.

Disclaimer
This announcement contains forward-looking statements. Such statements are subject to risks and uncertainties, as various factors, many of which are beyond the control of H+H International A/S, may cause actual developments and results to differ materially from the expectations expressed in this announcement.

H+H’s core activity is the manufacture and sale of wall building materials, with a revenue in 2017 of DKK 1.6 billion before acquisition of the calcium silicate product line. The main product lines are aircrete blocks and since 2018 calcium silicate units used for the residential new building segment. H+H has 28 factories in Northern and Central Europe and Northwest Russia with a total output of 4 million cubic metres of products annually and has a leading position in most of its markets. H+H has around 1,500 employees and is listed on Nasdaq Copenhagen.

357 Closing acquisition of Grupa Silikaty CSU business