Construction materials companies in Romania are increasingly a target for investment funds, who are attracted to the sector due to its fast rate of growth and high profit margins, Romanian business daily Ziarul Financiar reported on April 4.
Private equity funds like Enterprise Investors, Oresa Ventures and Advent International have all made acquisitions on the market estimated to be worth a total of 6.5 billion euro in 2007. Their investments have recorded 30 per cent returns in the first year after acquisition and the funds are looking for a healthy profit when they exit their investments in five years' time, the daily said.
"We expect his market to conitnue growing fast, mainly due to intensive investment in residential, business and industrial real estate, as well as infrastructure projects," the daily quoted Oresa Ventures managing director Cornel Marian as saying.
"The market is strong enough already and the growth of key companies makes them attractive to global players or bourse listings, which will ensure a winning exit strategy," he added.
Among recent deals in the sector are the acquisition of Bengoss Comimpex by Advent International for 18.9 million euro and Enterprise Investors' purchase of Simcor group for 53 million euro.
"Construction materials makers will remain attractive acquisition targts while they keep their current levels of growth and profit. According to some forecasts, that would be the case for at least five more years," Enterprise Investors partner Cristian Nacu said, as quoted by Ziarul Financiar.
