Hydro recently signed an agreement to acquire Hueck. The aim of the acquisition of the Lüdenscheid-based systems house is to strengthen Hydro's presence in Germany and other European markets. Hueck is a supplier of aluminium window, door and facade systems as well as a supplier of aluminium extrusion profiles and employs 500 people. The Lüdenscheid-based supplier has two extrusion presses and an integrated foundry. This means a solid basis for further growth in an integrated business model, according to Hydro.
The acquisition is made at an enterprise value of 60.3 million euros, adjusted for net debt and normalised working capital at the time of closing.
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"Hueck is well positioned in Germany to serve the European market for building systems and extrusions and is a perfect fit for Hydro Extrusions. The acquisition will strengthen our ability to provide our European customers with a high quality service offering across an even broader product range," says Paul Warton, Executive Vice President of Hydro Extrusions.
Where does Hueck stand today?
Hueck
Hueck generated revenues of €172 million and EBITDA of €12.8 in 2021. The building systems business complements Hydro Building Systems' Wicona brand, which is present in most European markets.
The 8" and 12" extrusion presses are a great addition to Hydro's extrusion portfolio in Europe - the foundry operation has an annual capacity of 50,000t.
Warton continued, "With this acquisition, we are emphasising Hydro Extrusions' focus on a sustainable, local supply chain and a high level of service. We believe that with highly skilled employees, a persistent focus on safety and on the quality of product deliveries, we can be exactly the partner our customers need."
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Germany is the largest market segment for building systems and aluminium extrusion solutions in the European market. With the acquisition, Hydro will have five extrusion plants, three recycling plants and a total of 2000 employees in Germany.
Among them are 200 technical staff specialised in the development of solutions for window, door and facade systems.
When is the deal expected to close?
The final closing of the acquisition is subject to the approval of the competition authorities in Germany and Austria and is expected for the first quarter of 2023.
