Veka Group buying profile competitor Gealan

By Catherine Kavanaugh
Staff Reporter

Published: March 12, 2014 12:12 pm ET
Updated: March 12, 2014 12:16 pm ET

Related to this story

Topics Mergers & Acquisitions, Extrusion, Building/construction, Windows & doors
Companies & Associations Veka AG

The Sendenhorst, Germany-based Veka Group will take over one of its competitors, Gealan Holding GmbH, in a deal that will move all Gealan subsidiaries and activities in Europe to one of the leading extruders of PVC-U profile systems for doors and windows.

Veka will see its staff grow by 1,150 employees and expects its annual turnover to increase from 793 million euros ($1.1 billion) in 2013 to more than 1 billion euros ($1.4 billion) following the acquisition of Gealan from financial investor Halder Beratungsbeteiligung.

The pending takeover still needs approval from authorities. The parties have agreed to keep the terms confidential.

Veka officials say they will bolster their position in Germany, Europe and the world by acquiring an established, well-known competitor that recently adopted a differentiation strategy.

“As an essential partner for European window manufacturers, we have to face the challenges of the market. That’s why we are strengthening our own competitive situation and, by combining our extensive expertise in profile technology, we will tap further market potential and opportunities for turnover,” Veka Group CEO Andreas Hartleif said in a statement.

The acquisition also contributes to consolidation of the market place, he added.

Internationally, Veka sells PVC-U structural elements to more than 2,200 specialized companies.

The family-owned business currently employs more than 3,600 people at 25 subsidiaries on three continents around the world. The North American operations are known as Veka Inc. and are based in Fombell, Penn.

Joe Peilert, president and CEO of Veka Inc., sees immediate advantages coming out of the Gealan acquisition.

“It means that we will soon benefit from the rich, comprehensive experience and profound expertise of both companies in the areas of extrusion, profile technology, and market development,” Peilert said in a statement.


Comments

Veka Group buying profile competitor Gealan

By Catherine Kavanaugh
Staff Reporter

Published: March 12, 2014 12:12 pm ET
Updated: March 12, 2014 12:16 pm ET

Post Your Comments


Back to story


More stories

Image

Germany's Lehmann & Voss buys U.S.-based Performance Compounding

September 12, 2014 11:36 am ET

German compounding firm Lehmann & Voss & Co. KG has acquired Performance Compounding LLC for an undisclosed price.    More

Image

Zotefoams expanding US production

September 12, 2014 10:50 am ET

Zotefoams plc, a British maker of specialty foams, has placed nearly 4 million shares on the market order to raise 8.4 million pounds ($13.6 million) ...    More

Image

ATS goes global with acquisition of M+W Process Automation

September 10, 2014 2:49 pm ET

ATS Automation Tooling Systems Inc., a maker of factory automation systems in Cambridge, Ontario, has agreed to buy a German company M+W Process...    More

Image

DS Smith adds to footprint with Croatian injection molding acquisition

September 10, 2014 2:05 pm ET

DS Smith plc, the London-headquartered packaging giant, has announced the acquisition of Kaplast dd, a Croatian injection molding company.    More

Image

Par-Pak Europe buys Holfeld Plastics

September 10, 2014 1:58 pm ET

Holfeld Plastics Ltd., the Ireland-based packaging manufacturer, has been bought by Par-Pak Europe (PPE) for an undisclosed sum.    More

Market Reports

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events