April 11, 2017

Xella: Sale to Lone Star successfully closed

Xella striving for further growth under new owner and based on strong operations

CEO Fabritius: Xella is well-equipped for the future. Now we will resolutely advance our growth path with the digital transformation of our business and selected M&A activities

Duisburg, April 11, 2017. The sale of the Xella Group to Lone Star, announced on December 1, 2016, was closed today. The parties agreed not to disclose details of the transaction.

In Lone Star, Xella gains a strong owner that opens up new growth opportunities for the company. “Xella and its management deliver an impressive performance. We look forward to working closely with the management, and to jointly continuing the company’s development,” says Donald Quintin, Senior Managing Director at Lone Star.
 
After a strategic realignment and the successful completion of its cost reduction program “X-celerate”, Xella has embarked on a very positive growth trajectory in terms of volume and profitability. The company already significantly increased its revenues and earnings in 2016.
 
Xella had a good start to the 2017 financial year. In January, the company refinanced itself at attractive terms. The new financing gives Xella a high degree of flexibility to systematically exploit future growth opportunities.
 
For 2017, Xella expects further revenues and earnings growth. “Xella is on a growth path. Our strategic initiatives are taking effect,” says Dr. Jochen Fabritius, CEO of the Xella Group. “Xella has become even more customer-focused. We sustainably optimized our production, abandoned our focusonvolume, and have pushed through price increases in nearly all countries. We want to continue to grow on this strong operating basis and further strengthen Xella through selected M&A activities,” adds Fabritius.
 
Another top priority is the company’s digital transformation. “Construction is largely driven by information. This is why the construction industry, too, must become more digital,” says Fabritius. “Xella will resolutely push forwardits digital transformation with four targeted initiatives. We want to create more streamlined processes and even better solutions for our customers.”

Contact persons for the press:
 
Xella International GmbH
Stefanie Steiner – Head of Public & Investor Relations
Phone: +49 203 60880-5500
Email: stefanie.steiner@xella.com
 
Lone Star
Sara Lübking
Hill+Knowlton Strategies GmbH
Tel.: +49 69 973 62 63 
Email: sara.luebking@hkstrategies.com
                                                                                       
 
About Xella


Xella Group is a leading, internationally operating solution provider of building materials and related industries, with sales of 1.33 billion euros (2016) and over 5,900 employees. Xella is one of the most profitable companies in the industry with earnings (EBITDA) of around 280 million euros (2016) and an EBITDA margin of some 21 percent (2016).

Xella is headquartered in Duisburg/Germany, with 95 plants in 20 countries and sales organizations in more than 30 countries. In many of its markets Xella holds leading positions.

The success of Xella is based on strong brands in the premium segment (e.g., Ytong or Fermacell), a superior service portfolio, a solid business model, and systematically expanded cost leadership.


Xella’s products are sustainable both in manufacture and use. Therefore, they make an important contribution to the construction of energy-efficient, high-quality buildings, and consequently to environmental protection and the conservation of resources.

Xella is led by an experienced management team consisting of Dr. Jochen Fabritius (CEO) and Hans-Jürgen Wiecha (CFO). Since 2017, private equity company Lone Star has been the group’s indirect owner.

Further information on Xella Group can be found on the internet at:
www.xella.com

 
About Lone Star
 
Lone Star is a leading private equity firm that invests globally in real estate, equity, credit and other financial assets. Since the establishment of its first fund in 1995, Lone Star has organized seventeen private equity funds (the “Funds”) with aggregate capital commitments totaling over $70 billion. The limited partners of the Funds include corporate and public pension funds, sovereign wealth funds, university endowments, foundations, fund of funds and high net worth individuals.
 
Important note:
 
This press release and the information contained herein are for information purposes only and do not constitute a prospectus or an offer to sell, or a solicitation of an offer to buy or subscribe for, any securities in the United States of America (“U.S.”), Australia, Canada, Japan or in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or the laws of any state of the U.S., and may not be offered, sold or otherwise transferred in the U.S. absent registration or pursuant to an available exemption from registration under the Securities Act. Neither Xella International S.A. nor its shareholder intends to register any securities referred to herein in the U.S.
 
Any offer will be made exclusively on the basis of a prospectus which is to be published.
 
No money, securities, or other consideration is being solicited, and, if sent in response to the information contained herein, will not be accepted.
 
This press release contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management of Xella International S.A. Forward-looking statements involve known and unknown risks and uncertainties and, therefore, should not be construed as guarantees of future results, performance and events. Actual results, performance or events may differ materially from those described in such statements due to, among other things, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, affecting Xella International S.A., and other factors. Xella International S.A. does not undertake any obligation to update any forward-looking statements.