Turkish cement manufacturer Çimsa, a subsidiary of Sabanci Holding, announced Wednesday it has taken a significant step in its global expansion strategy by signing an agreement to acquire 94.7% of Mannok Holdings DAC, a leading building materials producer based in Ireland.
Following expansions in Spain and the U.S., this agreement marks Çimsa’s third major global initiative in the past three years, reinforcing its commitment to becoming a leading player in the U.K. and Irish markets, the company said in a statement.
"Mannok, a company with over 50 years of experience and a strong presence in the U.K. and Irish markets, will enhance Çimsa’s product portfolio, diversify its production geography and strengthen its local and global supply chains," it added.
The company further noted that following approval from authorities, this acquisition will also contribute to Çimsa’s goal of generating 70% of its revenue in foreign currencies, thereby enhancing its balance sheet quality and enabling it to make more strategic long-term plans.
"The acquisition of Mannok, once finalized, will be perfectly aligned with our transformation strategy. It allows us to expand our footprint in the U.K. and Irish markets, which are critical for our growth. By incorporating Mannok’s advanced product lines, we can offer more diversified and value-added solutions to our customers," said Burak Orhun, president of Sabancı Holding’s Material Technologies Group.
"This acquisition also supports our goal of transitioning our portfolio from grey to green, in line with our commitment to sustainability."
Reuters reported that Mannok's total enterprise value was 330 million euros (nearly $366 million). Çimsa says that it will make adjustments for any debt or related items.
"According to the agreement, the total company value of Mannok is 330 million euros, and the final share purchase price corresponding to 94.7% of the capital will be determined after deducting the financial debts on the closing date and making other adjustments," Çimsa said in a statement at Public Disclosure Platform (KAP).
The statement also cited that according to its unaudited financial statements, Mannok achieved consolidated net sales of 293.7 million euros and earnings before interest, taxes, depreciation and amortization (EBITDA) of 57.5 million euros in the last 12 months ending June 30, 2024.
"We believe this agreement marks the beginning of a new era for Mannok. We are committed to preserving the existing workforce and creating new employment opportunities in the region to support Mannok’s further growth under the current strong local leadership team," Çimsa CEO Umut Zenar stated.
Mannok operates in two main business segments: building materials and packaging products. With manufacturing facilities in the Republic of Ireland and Northern Ireland, and a comprehensive sales and distribution network across the Republic of Ireland, Northern Ireland, and Great Britain, Mannok is well-positioned as one of the regional leaders in the industry.
The company currently employs around 800 people in the manufacturing of cement and other quarry products, concrete, insulation materials and packaging.
Founded in Mersin in 1972, Çimsa declares itself a pioneer of the Turkish cement and building materials industry. It achieved a turnover of TL 11.5 billion ($337.45 million) and a net profit of TL 1.9 billion in the first half of the year.