|Home: Global Wood||Industry News & Markets|
EGGER Group acquires
The EGGER Group continues to grow and strengthen its position in the German market with the takeover of the plant in Markt Bibart (DE). The purchase agreement was signed on 8 September 2023. The EGGER Group is consistently pursuing its strategy of growth based on its own performance and is able to further strengthen its position with the purchase of the Rauch chipboard plant in Markt Bibart, Germany. After the sale, the Rauch Group will focus fully on the further development of its furniture plants in order to further expand its strong market position.
The plant in Markt Bibart has facilities for the production of raw chipboard with a capacity of up to 650,000 manually. The supply of Rauch furniture plants will continue in the long term even after the takeover by the EGGER Group. In addition, EGGER sees great opportunities to expand the business model in Germany by supplying fixed dimension boards to customers. With regard to processes and systems, EGGER is striving for a rapid integration of the plant into the Group. In addition, the wood-based material manufacturer is already examining the first investment projects at the location. EGGER is counting on the experience of the local staff. The wood-based material manufacturer will take on all 195 employees of the Rauch chipboard plant at the time of closing. ¡°We are looking forward to welcoming our new qualified and committed colleagues as part of our global corporate family. We are convinced that together we will successfully develop the Markt Bibart plant in the long term,¡± says Thomas Leissing, EGGER Chief Financial Officer and Speaker of the Group Management.
Subject to approval by the cartel law authorities, the chipboard plant in Markt Bibart will be the 22nd production plant of the globally active EGGER Group. The parties have agreed not to disclose the purchase price and further details of the transaction. The Rauch Group¡¯s furniture plants remain unaffected by the takeover. Expressing his views about the benefits of this take over Rainer Hribar, CEO of the Rauch Group said, ¡°Since the share of deliveries to third-party customers and thus the product range has increased continuously in recent years, we have gradually detached ourselves from the original business idea. In order to remain competitive in the chipboard market in the long term, high expansion investments are required. The EGGER Group has the power to leverage the potential of the Markt Bibart location and Rauch can now fully focus on the further development of the furniture plants.¡±