Wienerberger (Vienna / Austria; www.wienerberger.com) is to take full ownership of plastic pipe producer Pipelife (Wiener Neudorf / Austria; www.pipelife.com) by purchasing the 50% stake owned by Solvay (Brussels / Belgium; www.solvay.com). Solvay said it will receive EUR 172m for the shares, including a EUR 10m special dividend. The deal represents an enterprise value of EUR 257m for the 50% stake, taking liabilities into account, it added.

Wienerberger, which is the world’s largest brick producer, said the acquisition will reduce its dependency on cyclical new residential construction from nearly 70% to 60% of revenues and open opportunities for growth in new markets. Pipelife reported an EBITDA of EUR 69m and revenues of EUR 805m in 2011, with more than half the revenues generated in the Nordic countries, Benelux, France and Austria. It has 27 production plants and about 2,600 employees.

Pipelife expects above-average growth over the coming years, particularly from rainwater management systems, fresh water supply systems and power and broadband installations. “Plastic pipes continue to gain market shares over competing metal and concrete products,” stated Heimo Scheuch, Wienerberger’s CEO.

Solvay said it will use the proceeds from the sale to focus on more strategic activities. Executive vice president Dominique Clerbois said Solvay and Wienerberger founded Pipelife 20 years ago to support a transition from concrete and metal pipes for water transportation to plastic pipes and build a market leader. “This project became a great success with both targets met," he added. The transaction is expected to close in the second quarter of 2012, following antitrust approvals.