Hungary’s Falco Changing Hands

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Hungary’s Falco Changing Hands

Szombathel, Hungary, May 02, 2007--Ownership of Falco Fiberboard Manufacturing Zrt is changing hands. Following the sale of its owner, Austrian wood industry group Constatia, Falco may also be taken over by Austrian Kronospan Holdings.

 

With EUR 3 billion income, Kronospan is one of Europe's largest wooden board manufacturers. Falco has confirmed the possible takeover but not the transaction itself.

 

The two companies have been negotiating about the deal since last summer. If the takeover is approved by the Competition Committee of the EU, it may be carried out within a few months, according to Austrian press information.

 

Kronospan already has another Hungarian subsidiary, Kronospan-Mofa Kft, it has invested over Ft 10 billion into that. Falco has 440 employees and realized an over Ft 18 billion turnover in 2006, with 70% of sales coming from abroad. It had about Ft 1 billion after tax profit in the recent years on average.