Steico SE’s majority shareholder is exploring a sale of the specialist wood-based insulation maker, according to people with knowledge of the matter, as demand for ecological construction materials rises.
(Bloomberg) — Steico SE’s majority shareholder is exploring a sale of the specialist wood-based insulation maker, according to people with knowledge of the matter, as demand for ecological construction materials rises.
Chief Executive Officer Udo Schramek has been working with advisers to gauge interest in Feldkirchen, Germany-based Steico, the people said, asking not to be identified discussing confidential information. Schramek, who founded the company’s predecessor in 1986, holds about 61% of Steico, data compiled by Bloomberg show.
Shares of Steico were up 17% at 2:51 p.m. Friday in Frankfurt, giving the company a market value of about €675 million ($735 million) and putting it on track for the biggest daily gain since October 2018.
Steico had lost more than half its value over the last year, giving the company a market value of €582 million ($634 million), 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., the people said.
Deliberations are ongoing and no final decision on a sale has been made, the people said. The slump in the share price and cyber attack may complicate negotiations, some of them said.
Representatives for Steico couldn’t be immediately reached for comment. A spokesperson for Kingspan declined to comment, while the other potential suitors 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.
(Updates wiith share move in third paragraph.)
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