German drainage pipe systems maker Ostendorf Kunststoffe GmbH. is strengthening its business in southern Europe with the acquisition of Spanish rival plastic water pipe extruder Adequa.
Ostendorf, based at Vechta in Lower Saxony, is in the process of purchasing the Iberian business with its three plants across Spain from construction materials group Corporación Empresarial de Materiales de Construcción, S.A. (COEMAC), for a reported sum of around €11m.
Adequa, headquartered at Alovera, north of Madrid, specialises in the production of PVC water distribution and drainage pipe and fittings. It employs 250 at manufacturing units in Alovera, Alcazar de San Juan south of the Spanish capital and at Antequera, close to Malaga in Andalucia.
Ostendorf, in line with its current strategy of international expansion, aims to close the takeover deal by the third quarter of 2019.
Following the acquisition, Adequa will continue trading independently in the market and still be managed by its current top team, chief executive Fernando Maté and chief strategy officer Raúl García.
“By acquiring Adequa, we are strengthening our business in southern and western Europe, since we are taking over a brand that is strong on the domestic market, thereby gaining access to an extensive customer portfolio,” said Ostendorf chief executive officer Holger Büscherhoff.
The German buyer moulds polypropylene, polyethylene and vinyl pipe products for construction and civil engineering markets, along with the sanitary pipe sector. It is one of Germany’s leading sewer pipe systems.
Ostendorf operates three pipe systems plants in Germany at Vechta; Emstek near Bremen in the north and in Rain, Bavaria. In addition, the company has other facilities in Poland, the Czech Republic and in Russia.
Adequa is reported to have recorded an annual turnover worth almost €63m in 2017. A year earlier, Madrid-based Coemac group disposed of its gypsum paneboard businesses to focus on the Adequa operations.