European building products manufacturer Deceuninck Group has acquired 81.2 percent of Pimas Plastik Insaat Malzemeleri AS, the leading PVC window profile producer in Turkey, for about 57.7 million Turkish lira ($26.5 million).
The purchase gives Deceuninck, which is based in Hooglede, Belgium, two more manufacturing facilities — one near Istanbul and one in Rostov-on-Don, Russia — along with complementary products and a wider customer base served by a distribution network with 1,200 points of sales.
The acquisition, which was announced Aug. 25, is in line with Deceuninck's plans to strengthen its position in Russia and Turkey, which are the first- and second-largest PVC window markets in Europe, respectively.
Ever since Deceuninck entered Turkey more than 14 years ago, sales and profits have grown steadily, according to CEO Tom Dubusschere.
“Some periods of turbulence were turned into opportunities for further market share growth,” he said in a news release. “The acquisition of Pimas, with its pioneer brand Pimapen, the most recognized name for windows in Turkey, presents a great opportunity. As a result, Deceuninck will move to the No. 1 position in Europe's second-largest PVC window market, which is estimated at 325,000 [metric tons] per year.”
The same market in Russia is estimated at 370,000 metric tons per year. Deceuninck has had a presence in Moscow for 10 years. The Pimas acquisition gives it a modern facility in southern Russia, which is a competitive market for new construction and renovation.
Pimas posted sales of 174 million Turkish lira ($79.9 million) for the fiscal year that ended June 30 and is listed on the Istanbul stock exchange. Deceuninck will launch a mandatory public offering after the deal closes to meet a Turkish law requirement.
Already listed on Euronext Brussels under the ticker DECB, Deceuninck had 2013 sales of 536.5 million euros ($708.3 million). Turkish sales represented 23 percent of the group's world sales while Western Europe made up 33 percent, Central and Eastern Europe were 30 percent and North America was 14 percent.
Turkey is a major export hub for the 75-year-old company, which also is building a new factory there in Menemem near Izmir that will replace the smaller Egepen Deceuninck plant.
In addition, the Belgian group operates a second smaller plant in Turkey at Kocaeli. The facility opened in 2007 and manufactures Deceuninck's Winsa brand window system.
Deceuninck will fully consolidate Pimas when the deal closes and then it will hold the top three brands for high-end PVC windows in Turkey with Winsa, Egepen and Pimapen, which also offers a foldable glass balcony system.
Deceuninck currently has 12 manufacturing plants in 10 countries and 2,700 employees in 25 countries.