Acquisition Said to Create Europe's Third Largest Window Maker
AFG Arbonia-Forster-Holding AG, based in Arbon, Switzerland, is acquiring Dobroplast, said to be the leading Polish manufacturer of PVC windows with annual sales of approximately $95 million. With the acquisition, AFG will become the third largest window and door manufacturer in Europe, it reports.
The takeover still requires the approval of the Polish competition authorities. Terms of the transaction, expected to close in January 2013, have not been disclosed.
By purchasing the Polish window manufacturer, AFG is taking an important step towards greater internationalization of the corporate group. "Dobroplast operates in one of the most attractive eastern European markets and strengthens the great potential of significantly expanding exports to central and eastern European markets, as well as Germany," said Daniel Frutig, AFG CEO.
The purchase of Dobroplast enables the AFG Windows and Doors division--incorporating the brands EgoKiefer, Slovaktual and RWD Schlatter--to expand its window portfolio geographically, as well as qualitatively and in terms of price. The Poland location offers excellent opportunities to implement the "go east" strategy, Frutig explains. "The combination of the production locations, brands and distribution channels enables us to continue to expand our position in the most important European markets."
The Swiss company's window and door unit will be able to increase sales by about 20 percent to approximately $527 million as a result of the acquisition. The acquisition also provides access to an attractive Polish window market, which is four times as large as the Swiss market in terms of volume.
Dobroplast was established 11 years ago in Zambrow, Poland, by Renata Kaczynska and Pawel Kaczynski. In addition to the head office, the company has a second plant in Lublin, which started operations in August 2012. "We are extremely satisfied that we can hand our life's work over to AFG," says Renata Kaczynska. "The Swiss group, which has achieved international recognition and offers excellent products, guarantees that there will be positive development at Dobroplast in the future." The founding couple will continue to run the company together with a team from AFG for the foreseeable future.