CSR Limited (CSR) todayannounced the acquisition of two businesses which expand the CSR BuildingProducts portfolio into adjacent markets of ventilation and metal roofing.
CSR Building Products hasentered into a conditional contract to purchase the business assets of Edmonds Pty Limited (Edmonds).
Edmonds is a world leader in the design and manufacture ofhigh quality energy efficient ventilation products which improve aircirculation and regulate thermal conditions in residential and commercialapplications. Specialising in bothpassive (wind powered) and mechanical products, Edmonds supplies residential,commercial and industrial customers within Australia and has a developingexport market.
Purchase of the Edmonds assets will further extend CSR’sBradford™ insulationoperations and complements its ‘Smarter Environments’ positioning. Legislative changes requiring improved energyefficiency in homes and buildings and increased focus on energy savings isdriving strong growth in improved ventilation and insulation systems.
CSR Managing Director Alec Brennan said, “Edmonds is anatural extension to CSR’s Bradford™ glasswool, rockwool and foil insulationbusiness. Ventilation systems combinedwith effective insulation create a significant improvement in home comfort andreduce energy costs.”
CSR Building Products has also agreed to purchase theassets of DBC Building Products, a Queensland based metal roofingcontractor. This acquisition is anotherstep in CSR’s strategy to extend its product and service offering in theroofing market.
“The acquisition of DBC Building Products enables CSR toprovide residential builders with a complete roofing solution,” Mr Brennansaid.
The two businesses havecombined revenue in excess of $18 million with a total acquisition cost ofapproximately $7 million. They will be earnings accretive and shareholder valuepositive in the first year of operation and are expected to grow sales revenuefrom the current base.
Bradford™ is a leading insulation producer inAustralia, New Zealand and Asia offering a full range of high performanceinsulation materials including glasswool which is made from more than 80%recycled glass.
CSR Roofing, with brands including Monier™concrete and Wunderlich™ terracotta roof tiles and Top Cat Safety Rail edgeprotection equipment, is a leading supplier of roofing solutions in Australiaand New Zealand.