Building suppliers: AFG and Looser to merge

AFG intends to make a public purchase and exchange offer to the shareholders of Looser Holding for all publicly held registered shares. Prior to this, the company has already undertaken to acquire 53 percent of all Looser shares from the existing family shareholders, members of the Board of Directors and the Executive Board of Looser Holding. AFG plans to have the Looser shares delisted from the SIX Swiss Exchange after completion of the offer and to initiate a squeeze-out procedure.

Like AFG, Looser, which is headquartered in Arbon, is mainly active in building supplies and equipment, particularly in the door business, where the product ranges and production sites of the two companies complement each other perfectly. For AFG, the merger, which is still subject to the approval of the shareholders of both companies and the competition authorities, is therefore a "major step towards achieving the strategic goal of becoming a leading European building supplier," according to the company.

In addition to the door business, Looser's industrial services business (Condecta) will also be transferred independently to the new Group. Looser intends to sell the coatings business.

As part of the transaction, it is planned to change the company name AFG Arbonia-Forster-Holding AG to Arbonia AG.

Taking into account the synergy potential and the restructuring and relocation processes announced in 2015 and already underway, AFG expects the new Group to generate revenues of around CHF 1.4 billion (after the sale of the coatings business) and EBITDA of at least CHF 150 million in 2018, with stable markets. (ah)