08/09/2006 - Petzetakis enters into MOU with Wavin B.Y. for sale of it's Greek plastic pipes & fittings bussines

Aristovoulos G. Petzetakis S.A. (“Petzetakis”) has entered today into Memorandum of Understanding with Wavin B.V. (“Wavin”) for the sale of the Group’s Plastic Pipes and Fittings Business in Greece, for an aggregate consideration of EURO 60 million of which EURO 5 million is subject to the achievement of certain financial targets for 2006 and 2007. In 2005, the turnover of the said Group Business was slightly over EURO 60 million and accounted for approximately 30% of Petzetakis’ Group turnover.

This divestiture is an important milestone for Petzetakis future development, as it restores financial stability and substantially strengthens its balance sheet whilst, at the same time, it provides for a strong focus of its business operations on two strategic areas, where Petzetakis is presently the market leader:

·        the hoses business in Europe (Petzetakis’ original core business), with 5 production sites in Greece, Spain, Portugal, Italy and Germany, 2 commercial subsidiaries in Romania and the UK and trading presence in more than 80 countries worldwide; and

·        the hoses and pipes business in South Africa with 3 production sites, where Petzetakis is well positioned to benefit from the fast growing economy of South Africa and of the neighboring countries (especially in the fields of infrastructure, civils and mining).

The completion of the said transaction is subject to certain conditions, including Wavin’s completion of financial and legal due diligence, the execution of legally binding documentation and obtaining all necessary corporate and regulatory approvals and consents.

The Wavin Group is Europe’s leading supplier of plastic pipe systems and solutions. Wavin is headquartered in Zwolle (The Netherlands) and has a presence in 27 European countries. It has manufacturing sites in 16 countries and sales offices in an additional 11 countries. The Group employs approximately 7,300 people and had pro forma annual sales of EUR 1.4 billion in 2005.

Petzetakis Group profile:

Petzetakis Group is the market leader in both the hoses business in Europe and South Africa and the pipes business in Greece and South Africa. It is the largest producer of plastic pipes, hoses and fittings in Greece being historically the first Greek multinational company. It currently operates 11 production sites in Europe and South Africa with 17 affiliates in 11 countries and trading presence in more than 80 countries worldwide

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