Enterprise Investors provides equity financing for the acquisition of Simcor by Macon Deva

Simcor was created in 1972 and privatized in 1996. Today the group comprises seven companies, which Macon acquired
as follows: Simcor Oradea (78.5%), Simbeton (50.14%), Simterac (93.06%), Simcor Var (100%), Simcor Management (100%), Simpromat (100%) and Simsped (100%). Later this year Macon will organize a mandatory public tender offer to buy the rest of the shares in the two listed companies of the group, Simcor Oradea and Simbeton.

Macon Deva was acquired by PEF V in 2006 in a €35 million buyout transaction. Thanks to effective cooperation with Enterprise Investors, Macon’s performance has increased significantly, reaching €40 million in turnover last year (28% up on 2006), while
its net profit grew by 68%. The company, which is now in its 45th year, intends to further expand its production capacity in order to meet the ever-growing market demand.

Following this acquisition Macon will become the leader on the Romanian building materials market. Its combined AAC (autoclaved aerated concrete) capacity is estimated to reach 800,000 m3, and consolidated net sales will exceed €70 million by the end of this year. The new entity will continue to produce and sell its products under the two well-established brand names.
It will be managed by a team of Macon and Simcor managers under the leadership of Mr. Marius Marin, the CEO of Macon, who proved very successful in restructuring Macon. The total number of employees of the new entity exceeds 1,300.

Simcor Group is one of the largest building materials producers in Romania. The seven firms comprising the group specialize
in production, sales` and transportation of building materials such as AAC, lime, mortars, concrete pre-cast elements and terracotta tiles. The two main groups of products, AAC (the most widely used construction material in Romania), and lime
(an important component in AAC production), represent approx. 85% of Simcor’s consolidated revenues. Simcor’s turnover
in 2007 was €25 million, and it will reach €30 million by the end of this year.

“Simcor will follow in Macon’s footsteps and undertake rigorous reforms. We are confident that we will successfully integrate both brands and create the strongest player on the Romanian building materials market – one that will continue to grow
and be appreciated by Romanian consumers. We intend to implement, together with Mr. Marius Marin, the same management strategy that allowed Macon to improve significantly the quality of its products, increase its production capacity and gain market share,” said Cristian Nacu, a partner at Enterprise Investors.

“Macon took lead of the Romanian building materials market as a result of a complex restructuring process. Our company’s development strategy demanded the acquisition of a competitor, and Simcor was the best choice. In order to consolidate Macon’s leading position on the masonry materials, pre-cast elements and lime markets, we intend to integrate the two firms into a holding company, in a process that will take approximately 18 months,” declared Marius Marin, CEO of Macon Deva.

Enterprise Investors is the oldest and one of the largest private equity firms in Central and Eastern Europe. Active since 1990, the company manages seven private equity and venture capital funds with capital exceeding €1.7 billion. To date, Enterprise Investors has invested €1.1 billion in 107 companies across CEE. This figure includes €100 million invested in five businesses
in Romania: Orange Romania (exited in 2005), Artima (exited in 2007), Siveco, Macon Deva and Simcor Group. EI’s cumulative investments in the construction sector amount to €65 million.

Enterprise Investors was advised in the Simcor transaction by RTPR Allen&Overy, PricewaterhouseCoopers and Raiffeisen Capital Investment.