Etex-Arauco joint venture E2E has signed an agreement to acquire a majority stake in Tecverde - 11/12/2019

 

Press releaseE2E, a Chile-based joint venture founded by Etex, an international building materials specialist, and Arauco, a diversified global company active in the forestry industry, has signed a share purchase agreement to acquire a majority stake in Tecverde Engenharia, a Brazilian innovative building company specialised in wood-frame construction systems. The acquisition will enable both E2E and Tecverde to pursue their expansion plans. The completion of the deal is subject to the approval of the Brazilian Competition Authority (CADE) and other customary conditions.

Tecverde was established in Curitiba, Brazil, in 2009 by a group of young entrepreneurs who were seeking to disrupt and transform the civil construction industry in a sustainable, scalable way. Ten years later, with the support of private equity funds Global Environment Fund (GEF) and Performa Investimentos, Tecverde is a strong and respected player in wood-based framing technology in Latin America. It employs 250 people and has a production capacity of 3,500 houses per year. The company forecasts to double its revenues in 2019.

The company’s innovative wood-frame construction systems allow for nearly a full building to be fabricated in a climate-controlled factory and completed with the installation of wall panels during final assembly at the construction site. Tecverde delivers increased efficiency to the construction industry by significantly reducing construction time, materials, carbon emissions and cost. Its systems have allowed the company to win several major innovation prizes and obtain construction approvals for four-storey buildings using wood-frame technology.
 

E2E, an innovative construction company based in Chile


As a 50/50 joint venture created in 2018 by partners Etex and Arauco, E2E combines Etex’s experience in plasterboard and fibre cement technology with Arauco’s expertise in sustainable forest product solutions. The joint venture develops and manufactures complete construction solutions composed of panels, wooden interior structures and external boards.

These solutions are highly insulative, weather resistant and acoustically shielding as well as affordable and easy to install. In developing modular lightweight building solutions using the latest building materials and technologies, E2E strives every day to improve the way people build and live where it operates. 

Combining strengths for sustainable growth


Upon completion of the deal, E2E will have a majority stake in Tecverde by acquiring all shares owned by GEF, Performa and other non-executive shareholders. The remaining shares will remain in the hands of the executive founders, who will continue to be part of the company’s management.

E2E’s investment will both support Tecverde’s growth plan and enable E2E to break new ground in the construction industry of Brazil. By combining their strengths and know-how, both companies are now aiming to grow further in the Brazilian market. All parties share the same goal: to transform the way people live and build by bringing productivity, innovation and sustainability to the sector.

Paul Van Oyen, CEO of Etex: “I am thrilled about this acquisition which brilliantly concludes a series of strategic moves we have made in 2019 – the divestment of two roofing tile businesses and the decision to build a new plasterboard production facility in the UK. The operation is obviously fully in line with our strategy focused on lightweight construction, by offering our customers and partners complete construction solutions using pioneer materials and technologies. Adding a player in wood-frame construction systems to the portfolio of expertise of E2E will undoubtedly support our growth in Latin America and beyond in the years to come.

Matías Domeyko (CEO of Arauco): “This agreement is part of our integrated development strategy, in which economic growth and environmental responsibility are crucial to lead a sustainable business in a global scenario. I believe that ever-changing demographics and climate change pose huge challenges for the construction industry, and there is no doubt that wood is a key factor to meet a global and sustainable growth, improving people’s lives while protecting the planet. When it comes to investments, innovation and sustainability, we must constantly take our best practices to the next level. There is no doubt that Tecverde is a great platform to connect us with such global challenges.

Caio Bonatto (CEO of Tecverde): “We founded Tecverde ten years ago with the ambition to transform the civil construction sector in a more industrialised and sustainable way. Today we can say that we are on the right path to achieve our goals. With the support of E2E, backed by two major players like Arauco and Etex, I have no doubt that we have the best partners to accelerate our growth and technology development. We are ready to create a great legacy in our industry.

 

About Etex:

Etex is an international building materials specialist; the company wants to inspire people around the world to build living spaces that are ever more safe, sustainable, smart and beautiful.

Founded in 1905, headquartered in Belgium, Etex is a family-owned company with 14,500 employees globally. It operates 113 production sites in 42 countries and generated a revenue of EUR 2.9 billion and a REBITDA of EUR 405 million in 2018. Etex fosters a collaborative and caring culture, a pioneering spirit and a passion to always do better for its customers.

Building on its experience and global market needs, the company strives to improve its customers quality of living with ever more effective lightweight solutions. Its three R&D centres support four global sales divisions:

  • Building Performance: dry construction solutions including plasterboards and fibre cement boards, plasters and formulated products, passive fire protection and associated products.
  • Exteriors: a range of aesthetic fibre cement materials for use in agriculture, architectural and residential exteriors.
  • Residential Roofing: concrete and clay roof systems including tiles and roofing components.
  • Industry: fire protection and high performance insulation products for the construction and OEM (Original Equipment Manufacturer) industries.

Etex is Inspiring Ways of Living.

About ARAUCO:

ARAUCO is a diversified global company in the forestry industry that uses world-class technologies and processes throughout its value chain. The company manufactures a wide range of sustainable forest product solutions, including the industry’s most-comprehensive selection of composite panels, premium plywood, millwork, bioenergy, lumber and wood pulp.

The company’s purpose is to provide inspiring products that improve the lives of millions of people around the world, through a sustainable management of its forest resources. It engages with neighbouring communities, planning its operations with their participation, and addressing potential impacts.

ARAUCO also nurtures a culture of innovation, combining ideas, technology and creativity to develop new and better solutions for its customers’ needs, as well as initiatives that benefit its employees and aim for social and environmental sustainability.

ARAUCO’s forestland and industrial facilities are certified to national and international standards related to the management of aspects of corporate governance, environment, quality, health and safety protection and responsible forest management.

ARAUCO
Renewables for a Better Life
For more information, visit our website: www.arauco.cl

 

 

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