Brazilian Acquisition of Reax Industria for £12m
Burmah Castrol PLC
20 January 2000
BURMAH CASTROL
FURTHER EXPANSION OF CONSTRUCTION CHEMICALS
Burmah Castrol plc ('Burmah Castrol'), the international
specialised lubricants and chemicals group, announces the
further expansion of its Fosroc Construction business with the
acquisition of Reax Industria e Commercio Ltda, Brazil, for
£12 million in cash.
Reax is the leading supplier of concrete admixtures to the
Brazilian civil engineering and construction industries, and
also has a strong position in cement-based mortars and
specialised coatings for the refurbishment market. The total
market for construction chemicals in Brazil is around £200
million.
Reax will complement Fosroc's existing Brazilian operations,
creating a market leading company with sales of around £10
million, and will provide a platform for penetration of the
Latin American market.
This move follows Fosroc's acquisition of CIA, France, and
Holderchem Euco SA (HESA), Spain, for £15 million in June
1999, and will further strengthen Fosroc's global position and
technological capabilities.
Tim Stevenson, chief executive of Burmah Castrol, comments:
'Fosroc Construction has a powerful technical and market
position and we intend to expand this business as part of
our strategy to enhance shareholder value. Following its
excellent results in 1999, a programme of significant
revenue investment in geographic expansion and technology
development is planned for 2000, which will be supported
by further acquisitions as appropriate.'
For further enquiries, please contact:
James Alexander, Corporate Affairs Director,
Burmah Castrol plc 0171 499 9533
Sharon Ostaszewska, External Relations,
Burmah Castrol plc 01793 452946
Rachel Hirst/Harriet Keen,
Hogarth Partnership Limited 0171 357 9477
A copy of this release plus further company information is
available on our website: www.burmah-castrol.com
Notes to editors:
Note 1
Burmah Castrol businesses market specialised lubricant and
chemical products and services on a worldwide basis. The
group had a turnover close to £3 billion and operating profits
of £255 million for the full year 1998. It has over 150
subsidiaries operating in some 55 countries and employs just
under 20,000 people. Burmah Castrol is based around a series
of international businesses, each focused on the specific
requirements of its own market place but sharing common
characteristics. Four of the group's businesses trade under
the Castrol brand name and the remaining businesses operate in
speciality chemicals.
Note 2
Fosroc Construction provides formulated products for the civil
engineering and construction industries worldwide, including
repair and maintenance. The Fosroc brand is recognised at
every stage of the construction process, from foundation to
completion. Products include admixtures to give improved
workability, strength and durability to concrete in different
climatic conditions; sealants for reservoirs, dams and
tunnels; and products to protect new concrete and extend the
life of old structures.
Note 3
The acquisition of CIA, France, and Holderchem Euco SA (HESA),
Spain in June 1999 enhanced Fosroc Construction's position in
Western Europe, most particularly in the fast growing Spanish
market where HESA's activities complement Fosroc's existing
operations. Fosroc's position worldwide was also strengthened
by the acquisition of CIA through its development and
application of new types of polycarboxylate concrete admixture
technology and cement additives.
Note 4
Within the construction industry, the use of admixtures,
mortars and coatings, is increasingly important.
* Admixtures are added to concrete in the new
construction process to improve the concrete by
minimising the amount of cement required to obtain a
certain strength. They also enhance the performance
and durability of concrete.
* Mortars are mixtures of sand, cement and small sized
aggregates which are designed to remediate concrete
where it has been incorrectly placed or used to repair
damaged concrete. There is a wide range of mortars
available for different applications and strengths.
Ancillary products are used with the mortars to
minimise further corrosion.
* Coatings are applied to steel and concrete to prevent
the ingress of aggressive elements, such as chloride,
de-icing salts, acid gases in the atmosphere, which
attack concrete.
Latest directors dealings
- 2 hours ago Frasers Group
- 2 hours ago Cavendish Financial
- 2 hours ago Diaceutics
- 2 hours ago AB Dynamics
- 15 hours ago Johnson Matthey