BPB announces that it is acquiring 45% and management control of the Egyptian Gypsum Company, the leading supplier of building plasters in Egypt. Operating from two plants and two quarries, the company achieved sales of E£45 million (£8 million) in the year to 31 March 2000, supplying around 350,000 tonnes of plasters to the growing Egyptian construction industry.

A 50/50 local joint venture has been formed by BPB and Orascom (an established Egyptian construction group) to acquire 90% of the company under the Egyptian government's privatisation programme. Existing employees, some 380, will be allocated the remaining 10%. BPB's contribution to the total cash consideration is E£41.6 million (£7.4 million).

In addition, BPB has added to its leadership of the European expanded polystyrene insulation market, investing £1.3 million in cash for the separate acquisitions of Cospan in Belgium and Novopol in the Czech Republic.

Commenting on these three deals, BPB's Chief Executive Richard Cousins said:

“The Egyptian acquisition provides BPB with an exciting opportunity to develop the local market for modern plasters and fast-track lightweight building systems, while our further investment in European EPS insulation will secure additional integration synergies and strengthen BPB's routes to market.”

• BPB is a world leader in the supply of plasterboard, plasters, insulation, ceiling tiles and related products for internal linings, serving growing markets for building systems in over 50 countries.
  
• Completion of the Egyptian transaction, which is subject to normal closing conditions, is planned for the end of March 2001.

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