Steico SE’s controlling shareholder is considering a sale of his stake in the specialist wood-based insulation maker, as demand for ecological construction materials rises.
(Bloomberg) — Steico SE’s controlling shareholder is considering a sale of his stake in the specialist wood-based insulation maker, as demand for ecological construction materials rises.
Chief Executive Officer Udo Schramek is exploring strategic options, including the sale of his majority holding in the company, Steico said in a Friday statement that confirmed an earlier Bloomberg News report. Schramek, who founded the company’s predecessor in 1986, holds about 61% of Steico, data compiled by Bloomberg show.
“It is pointed out that even a majority sale of the shares in Steico SE does not lead to the need for a takeover offer with regard to the remaining shares,” the company said in its statement.
Shares of Steico closed up 20% on Friday in Frankfurt, the biggest daily gain in nearly 14 years, giving the company a market value of about €693 million ($752 million).
Steico have lost more than 40% of its value over the last year after its revenue outlook was impacted by the difficult environment. Steico in March said it had been the target of a cyber attack that affected both production operations and administration systems.
The group could attract interest from other European building material makers such as Kingspan Group Plc in Ireland, closely held German competitor Knauf Group, France’s Cie. de Saint-Gobain and Swiss company Holcim Ltd., people familiar with the matter said.
The slump in the share price and cyber attack may complicate negotiations, some of them said, asking not to be identified discussing confidential information. Representatives for Holcim, Kingspan and Saint-Gobain declined to comment, while Knauf didn’t immediately respond to queries.
Steico specializes in the manufacture of wood fiber insulation that can be used in roofing, facades and flooring. Such products have a more sustainable profile than typical insulation materials and have become increasingly popular as developers plan more eco-friendly buildings.
In February, Steico reported preliminary revenue of about €445 million for 2022, a 14.7% increase from the previous year. Management predicted continued “dynamic growth” in demand for ecological construction materials, while warning of “increased challenges” from high inflation, increased interest rates and more intense competition.
Any sale would add to $22 billion of announced sales in the building materials sector this year, Bloomberg data show.
–With assistance from Eyk Henning and Albertina Torsoli.
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