H&R WASAG strengthens explosives activities through further takeover
H&R WASAG AG is acquiring the majority shareholding in the German-based company, Sprengstoffwerke Gnaschwitz GmbH (SWG), from a privately managed group. The purchase is subject to the approval of the anti-trust authorities.
This purchase complements H&R WASAG's range of products in its Explosives division, principally by adding a production plant for dynamite for the stone/earth market, which had previously been missing from its range. Together with the manufacture of ANFO/ANC explosives and detonating fuses, this product area forms the main focus of SWG's activities. SWG achieves sales of EUR 18m per year.
The purchase also represents an important step towards building a European explosives group. H&R WASAG is planning to further expand its explosives activities in the coming years through acquisitions and alliances, in order to form a counterweight to the world's leading explosives companies.
The takeover of SWG will be carried out retrospectively with financial effect from January 1, 2004. SWG will not be consolidated until next year. Both parties have agreed not to divulge any details of the purchase price. H&R WASAG is financing the lion's share of the purchase price by issuing new shares in its subsidiary, SYTHENGRUND. Consequently the liquidity of the group will hardly be stressed at all.
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