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Press release
12 Aug 2024
EY advised TehnoWorld in the transaction with Romcim, a CRH company
EY Romania is privileged to advise the founders of TehnoWorld, the leading smooth and corrugated polyethylene pipe manufacturer in Romania, on the sale to CRH, one of the largest building material players in the world, employing 78,500 people in 28 countries.
During the EY-led process, the Lead Advisory team provided full sell-side M&A assistance, structuring and coordinating the execution of the transaction.
Over the course of 21 years, TehnoWorld, founded in Suceava county, became a market leader in the production of HDPE pipes and a regional champion competitive at the European level. Its integration within one of the largest building material players in the world represents proof of the success of the TehnoWorld business model.
Strategic investors retained their dominant hold on Romanian M&A during the first half of 2024, accounting for 93% of deal volume, albeit they announced the same number of deals in H1 2023 (115). Notably, this represents the highest market share of strategic investors since the first half of 2019. Global private equity exits fell to their lowest level in ten years during 2023, resulting in a lack of returns to investors, hindering the ability to raise capital for new funds which has in turn impacted private equity backed acquisitions.
From a cross-border perspective, domestic transactions accounted for 43% of the total number of transactions, with 53 deals recorded in H1 2024. Meanwhile, foreign investor appetite rebounded by 17% compared to H1 2023 with 62 deals, accounting for half of total deal volume, which is aligned with historical patterns.
We are honored to have assisted TehnoWorld in this transaction process and to have had the opportunity to represent and partner with inspiring people. The closing of this transaction is owed to a committed team formed by Cristian Drindea, Razvan Cebuc and Lucian Manea.
Iulia Bratu
Head of Lead Advisory | Strategy and Transactions EY Romania
Founded in 2003, TehnoWorld is a leading plastic pipe manufacturer specialized in the production of high-density (HDPE), polypropylene (PP) and PVC-U pipes.
Romcim is part of the CRH Group, one of the world's largest suppliers of building material solutions, holding leading market positions in both North America and Europe. The group is an essential global partner for the execution of projects in utility networks, critical infrastructure, complex non-residential construction, and outdoor landscaping projects. A Fortune 500 company, CRH shares are listed on the NYSE and LSE.
The CRH Group of companies in Romania is the most dynamic in the local construction industry, with over 2,500 employees in total and operating over 50 units nationwide, managed through the companies: Romcim, Elpreco, Ferrobeton, Baulemente, Sapphire, and now TehnoWorld.