On June 28, 2007, Cersanit S.A. signed an acqusition agreement of the leading Russian ceramic tiles producer and distributor Lira Group, embracing a group of five operating entities: Avtis, Zolotoy Iris, Tiles Trading, Lira Trade and Frianovo Ceramic Factory. As a result of the Lira Group acquisition, the position of Cersanit in the Russian market will be significantly enhanced by extending its current production capacity by 7.5m sq. metres, gaining a nationwide distribution network together with well positioned and highly recognised LIRA brand.
The agreement will come into force following the fulfillment of several conditions precedent, including i.a. obtaining of all necessary administrative approvals. Total consideration, for which Cersanit will purchase 100% stake in the aforementioned companies was agreed at EUR 46.5m. The final price will depend on several conditions contained in the preliminary purchase agreement entered into by the parties.
Baltic Investment Company acted as a co-advisor to Cersanit S.A. in the transaction.
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