Poland's Ciech says German acquisition to boost sales by 280 mln zlotys UPDATE

Poland's largest chemical producer, state-controlled Ciech, said today it has acquired German soda maker Sodawerk Stassfurt in a 75 mln euro deal that will boost sales by 280 zlotys annually and generate higher group profits.

Ciech, Europe's second largest producer of soda used in the production of glass, said it would finance the purchase with a bond issue and its own cash.

Its earlier bid to buy the German-based company failed in July this year.

'After the acquisition...annual revenues of Ciech group will increase by around 280 mln zlotys,' the company said in a statement.

'The acquisition will also increase profits,' it added.

In a separate presentation, company managers said the purchase would raise its annual EBITDA by 52 mln zlotys.

Sodawerk has an annual production capacity of 450,000 tonnes, Ciech said.

Earlier this year Ciech said it planned to spend up to 4.8 bln zlotys on a series of investments and acquisitions at home and abroad in a bid to triple net profit by 2011.

Source: By Piotr Skolimowski, .forbes.com