Belgium’s Etex eyes Knauf’s Australian assets

Knauf’s plasterboard facility at the Port of Bundaberg.

German plasterboard giant Knauf is believed to have another European suitor circling its Australian assets — Belgium-based building materials provider Etex.

The family-owned building materials company Etex operates in 42 countries, although it generates most of its revenue from the European market.

Etex sells cement, fibres, gypsum, (which is used to make plasterboard), sand, clay and other materials such as vermiculite, paper, mica and coatings.

Its interest comes as Boral announced this week that Knauf would buy its half share of their USG plasterboard venture for $1.43bn.

The transaction has until September to be finalised and places pressure on the Germany building materials group to sell its other plasterboard plants in Australia to appease the Australian Competition & Consumer Commission.

Boral had a plasterboard joint venture across Asia, Australia and New Zealand with USG, but Knauf bought out USG in a deal last year worth $US7bn.

Knauf has already hired Bank of America to sell the plasterboard factories it owned before it purchased the USG assets in Australia and Asia, owned in a Boral partnership.

It is the No 3 player in the Australian plasterboard market, which is dominated by CSR.

Before acquiring USG, Knauf’s Australian operations consisted of plasterboard, metal framing systems and acoustic linings and ceiling tiles.

It has four manufacturing plants in Victoria, NSW and Queensland.

The plasterboard manufacturing sites that it owned before the USG deal are located at Altona in Melbourne, Matraville in Sydney and Bundaberg, Queensland.

It also has a factory in Beenleigh in Brisbane where it makes metal profile lines.

The plasterboard sites that were part of the USG joint venture and are not for sale are at Port Melbourne, Camellia in Sydney and Pinkenba in Brisbane.

Also looking at the $400m-odd portfolio on offer is believed to be another European building materials company, Saint-Gobain. China National Building Material, or CNBM, is also understood to have shown interest.

Saint-Gobain operates in 67 countries and produces a variety of construction, high-performance and other materials with annual revenue of about €10.9bn ($18bn).

Meanwhile, market observers say the USG plasterboard venture had been a strong performer for Boral, but the $1.43bn paid by Knauf for its plasterboard interests was a strong price.