ARBONIA

AFG concludes purchase of Dobroplast

AFG climbs to No. 3 on the European window market – Expansion of window portfolio through purchase of cost leader with high export potential – Opening of new Lublin works

Arbon, 22 February 2013 – AFG Arbonia-Forster-Holding AG completes acquisition of leading Polish manufacturer of PVC windows Dobroplast. The purchase was concluded on 21 February 2013 following agreement by the Polish competition authorities. The company, which is based in Zambrow in Eastern Poland, has annual sales of around CHF 90 million. This will put AFG in No. 3 position on the European window and door market.

With completion of the acquisition of Polish window manufacturer Dobroplast on 21 February 2013, AFG is taking an important step towards the internationalisation of the group. The purchase of Dobroplast enables the AFG Windows and Doors division, which includes the EgoKiefer, Slovaktual and RWD Schlatter brands, to round out its window portfolio in terms of price, quality and geography. As an industrial location, Poland offers outstanding opportunities for implementing the company's "Go East" strategy.

With this acquisition AFG now offers a complete product range that meets all requirements and quality standards for all major European markets. It can therefore extend its position, particularly in Germany and the Eastern European markets. At the same time it strengthens the company's spread of risks through its international presence.

Completion of the acquisition of Dobroplast also allowed the holding of the official opening of the new works in Lublin, which was finished in autumn 2012. Whereas PVC windows are primarily manufactured in the main works at Zambrow, Dobroplast has production capacities in Lublin for roof windows and aluminium windows. Production in Lublin continues to expand and a workforce of around 100 is currently employed there.

Dobroplast was established twelve years ago in Zambrow, eastern Poland, by husband and wife team Renata and Pawel Kaczynski and has become the leading Polish manufacturer of PVC windows. Dobroplast has annual sales of around PLN 300 million (around CHF 90 million) and a workforce of around 1,200 employees. Currently, sales of PVC windows account for approximately 90% of revenues, with the remaining share divided into smaller segments: external doors, roof windows and aluminium windows.

With this acquisition the Windows and Doors division, headed by Thomas Gerosa, will be able to increase sales by around 20% to over CHF 500 million. The international share will increase to around 25%. The acquisition provides access to the attractive Polish window market, which is four times as large as the Swiss market in terms of volume.

Contact
Daniel Frutig
Chief Executive Officer
daniel.frutig(at)afg.ch

Stefan Kern
Head Corporate Communications
stefan.kern(at)afg.ch