Frauenthal completes acquisition of ÖAG AG

Vienna, 30 June 2014

Austria’s Frauenthal Group has completed the purchase of a 100% stake in Austrian plumbing supplies and pipe system wholesaler ÖAG AG – a direct competitor of Frauenthal subsidiary SHT Haustechnik AG. In mid-May Frauenthal announced an agreement with the former owner, international plumbing supplies wholesaler Wolseley, to acquire the shares. The transaction has now been concluded after the relevant competition authorities gave their approval. ÖAG will now operate as an independent company with its own brand as part of the Frauenthal Group.

“This deal puts us in third place on the wholesale plumbing supplies market in the German-speaking world. The Division has remained true to the Group’s motto of strength through diversity with the addition of a new civil engineering business in the form of ÖAG Kontinentale, and this leaves us very well placed overall,” commented Hans-Peter Moser.  The Wholesale Plumbing Supplies Division now has around 1,500 employees, with ÖAG and SHT forming a strong, independent Austrian group.

 

Three-brand strategy – SHT, ÖAG and Kontinentale

SHT and ÖAG’s three brands – SHT Haustechnik, ÖAG Haustechnik and ÖAG’s civil and industrial engineering business Kontinentale – will remain independent. “This three-brand strategy opens up significant potential for innovation and growth. Our aim is to give each brand’s image a sharper focus and enhance the performance of both companies,” Moser explained. The advantages for each company come from various synergies, economies of scale – such as bundling expertise and purchasing volumes – and overall efficiency gains that will translate into cost savings for both.

 

A reliable for partner for Austrian brand manufacturers

“This transaction also forms the basis for a reliable partnership with Austrian brand manufacturers. Our acquisition of ÖAG will secure its future as a strong brand in the country. And that means ÖAG’s suppliers will play their part in safeguarding plants and jobs in Austria,” Hans-Peter Moser added.

 The deal will not result in any changes for customers. Providing high-quality service will remain the leading priority, with a combination of continuous development of products and services, and innovation bringing about further improvements.

 

SHT – ten years in the Frauenthal Group

Around ten years ago Frauenthal entered the Austrian wholesale plumbing supplies market with its acquisition of SHT Haustechnik AG, adding a line of business that was completely independent from its Automotive Division. This strategy paid off and SHT has secured its place in a stable operating environment as a consistently successful and reliable mainstay of the Group thanks to prudent strategic investments and numerous innovative projects. In 2013 the Frauenthal Group’s Wholesale Plumbing Supplies Division generated sales of EUR 307 million (m), or 53% of consolidated revenue.

 

The companies in profile

Frauenthal Group

The Frauenthal Group is a Vienna-based conglomerate with a pan-European presence. Its corporate claim is “strength through diversity”, and it is committed to long-term value growth. Its two divisions, Frauenthal Automotive and Wholesale Plumbing Supplies (SHT), offer premium products and services that deliver outstanding customer benefits. In 2013 the Frauenthal Group had around 3,000 employees and generated revenue of around EUR 600m. Frauenthal Holding AG’s shares and bonds are listed on the Vienna Stock Exchange. 

www.frauenthal.at

 

SHT Haustechnik AG

Part of the Wholesale Plumbing Supplies Division, SHT is the market leader in Austria and ranks third in the Slovakian market. In 2013 SHT had 860 employees and posted revenue of EUR 307m. SHT leads the way in the industry in terms of quality and innovation, offering plumbers a comprehensive distribution, service and logistics network with a broad plumbing and heating product range.

SHT operates six logistics centres, seven sales outlets, 41 Installateur-Service-Center (ISC) cash-and-carry stores, 11 bathroom showrooms, six heating and energy advice centres and one heating showroom. The Austrian wholesaler also offers a variety of state-of-the-art IT solutions such as the mySHT e-commerce platform, where customers can find out what products are in stock, order items and access general information at any time, regardless of opening hours.

www.sht-gruppe.at

 

ÖAG AG

Founded in 1871 as österreichische Armaturen- und Maschinenfabrik AG, ÖAG was acquired by Creditanstalt and its subsidiary Wienerberger in 1935 before being taken over by Wolseley in 1994. This established Austrian company is a wholesaler of plumbing supplies and pipe systems, and supplies all sectors of the market from plumbers to industrial customers and municipalities. ÖAG currently employs around 750 people spread across all of Austria’s federal provinces, and operates a network of six sales outlets, 45 cash-and-carry plumbing centres, 15 bathroom showrooms and seven heating centres. Customers are supplied directly from its major logistics centres in Vienna, Graz, Wels and Kematen near Innsbruck in line with the promise of “ordered today – delivered tomorrow”.

www.oeag.at

 

Kontinentale

Founded in 1886, ÖAG AG subsidiary Kontinentale is one of Austria’s leading suppliers of civil engineering equipment and industrial pipework installations.

www.kontinentale.at

 

 

Contact

Ecker & Partner
Nele Renzenbrink

 

Goldeggasse 7/Hoftrakt
Tel: +43 (0)1 5993226
Fax: +43 (0)676 5017044
E-mail: n.renzenbrink@eup.at

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