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You are here:News»EGGER Group acquires Rauch chipboard plant
Monday, 11 September 2023 11:55

EGGER Group acquires Rauch chipboard plant

The EGGER Group headquartered in St. Johann in Tirol (AT) is able  to report further growth. The EGGER Group headquartered in St. Johann in Tirol (AT) is able to report further growth.

The EGGER Group continues its growth course and takes over the plant in Markt Bibart (DE). The purchase agreement was signed on 8 September 2023.

With the purchase of the Rauch chipboard plant in Markt Bibart, Germany, the EGGER Group is consistently pursuing its strategy of growth based on its own performance and is able to further strengthen its position in its home market Europe. After the sale, the Rauch Group will focus fully on the further development of its furniture plants in order to further expand its strong market position.

The chipboard plant in Markt Bibart, near Würzburg, has so far belonged to the Rauch Group, a family company with a long tradition. The company has been manufacturing and selling high-quality wardrobe and bedroom ranges for over 125 years. In 1958, Rauch took over the chipboard plant and from then on was able to produce its own chipboard for furniture manufacturing. The chipboard plant now supplies not only Rauch furniture plants but also other national and international furniture and door customers.

"Since the share of deliveries to third-party customers and thus the product range has increased continuously in recent years, we have gradually detached ourselves from the original business idea. In order to remain competitive in the chipboard market in the long term, high expansion investments are required. The EGGER Group has the power to leverage the potential of the Markt Bibart location and Rauch can now fully focus on the further development of the furniture plants," says Rainer Hribar, CEO of the Rauch Group.

Subject to approval by the cartel law authorities, the chipboard plant in Markt Bibart will be the 22nd production plant of the globally active EGGER Group. The parties have agreed not to disclose the purchase price and further details of the transaction. The Rauch Group's furniture plants remain unaffected by the takeover.

"Sustainable growth based on our own performance is our declared objective. We are successfully continuing our strategy with this additional location in our core market Germany. The many years of expertise of the staff in Markt Bibart, together with the synergy effects resulting from our Group presence, enable great growth potential for the location," emphasises Thomas Leissing, EGGER Chief Financial Officer and Speaker of the Group Management.

Further growth in the home market Europe as an objective
The plant in Markt Bibart has facilities for the production of raw chipboard with a capacity of up to 650,000 m3 annually. The supply of Rauch furniture plants will continue in the long term even after the takeover by the EGGER Group. In addition, EGGER sees great opportunities to expand the business model in Germany by supplying fixed dimension boards to customers.
With regard to processes and systems, EGGER is striving for a rapid integration of the plant into the Group. In addition, the wood-based material manufacturer is already examining the first investment projects at the location. EGGER is counting on the experience of the local staff. The wood-based material manufacturer will take on all 195 employees of the Rauch chipboard plant at the time of closing. "We are looking forward to welcoming our new qualified and committed colleagues as part of our global corporate family. We are convinced that together we will successfully develop the Markt Bibart plant in the long term," says Thomas Leissing.
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EGGER Group acquires Rauch chipboard plant

→ The EGGER Group successfully continues to grow based on its own performance and takes over the Rauch chipboard plant in Markt Bibart (DE). The purchase agreement was signed on 8 September 2023.
→ Subject to approval by the cartel law authorities, the chipboard plant in Markt Bibart will be the 22nd production plant of the globally active EGGER Group. → The EGGER Group gains 195 new employees.
→ EGGER thus strengthens its own market position in the core market Europe.
→ Rauch will henceforth focus fully on the further development of the furniture plants.