HIRSCH Servo AG: HIRSCH Porozell S.r.l. Acquires Two More Insulation Plants in Romania

Driving expansion of its EPS* Insulation division, the Austrian HIRSCH Servo Group today reached an agreement to purchase Arcon SRL's insulation business from the Romanian company.

By selling its EPS insulation segment, the owner of Arcon SRL, a producer of insulation and bituminous roofing membranes based in Bucharest and Sfantu Gheorghe, is planning to concentrate on the membrane business. The contract was signed today on an arm's length basis subject to conditions precedent, such as approval of the transaction under anti-trust legislation by the Romanian competition authorities. Both parties agreed to keep the sale price confidential.

'We aim to continue expanding our Insulation division and secure it in the long term with our acquisition of Arcon's insulation business,' says Harald Kogler, CEO of HIRSCH Servo AG. The market for insulation in Romania is performing well and has generated good revenue and growth for HIRSCH since market entry in 2006. 'In addition, given the excellent geographical location of the sites in combination with the experienced workforce, we also expect positive synergy effects for the Packaging division,' adds Kogler.

The acquisition of the two insulation plants in Bucharest and Sfantu Gheorghe agreed today together with the recently purchased factory in Timisoara/Romania and its own facility in Cluj will make HIRSCH the second largest insulation manufacturer in Romania in the future.

*EPS stands for expandable polystyrene and is better known under our brand name of Porozell

The next date on the financial calendar is November 30, 2016 when the results for the first six months of the 2016/17 fiscal year will be announced.

The HIRSCH Servo Group is the EPS specialist on the Vienna Stock Exchange with manufacturing facilities in Austria, Hungary, Poland, Slovakia, Italy, and Romania. EPS products (EPS stands for expandable polystyrene and is better known under the brand name of Porozell) support a variety of functions, including energy savings, as well as sustainable and eco-friendly growth. Their wide-ranging applications cover packaging, shape-molded parts, building insulation, modular boards for underfloor heating, construction blocks, and Thermozell lightweight concrete products.

Enquiries: Michaela Andritsch, Corporate Communications & Investor Relations, Phone: [phone]