Lafarge in talks with Etex over gypsum assets
Lafarge announced that the Group has entered into exclusive negotiations with Etex Group for the sale of its European and South American Gypsum assets at an enterprise value of EUR1bn. Under this proposed agreement, Lafarge would receive net cash proceeds of approximately EUR850m and in addition would receive a 20% interest in the new partnership, which would combine the European and South American Gypsum activities of both Groups.
Lafarge’s European and South American Gypsum division manufactures gypsum wallboard and other gypsum-based products such as plaster, joint compounds, and plaster blocks. In 2010, Lafarge’s European and South American Gypsum operations generated consolidated sales of EUR895m and EBITDA of EUR115m.
This project will be submitted to the relevant authorities, notably anti-trust authorities. Moreover, there will be an information and consultation process with the relevant employee representative bodies.
Bruno Lafont, Chairman and Chief Executive Officer of Lafarge, said: " This project unlocks immediate value for the Group while allowing Lafarge to participate in the new entity’s future success. We are very pleased of the future prospects of this reinforced partnership with Etex Group, a strong industrial company with expertise in building materials and systems. This operation is positive for Lafarge and its shareholders and will contribute to the strengthening of the Group’s balance sheet and to the optimization of its portfolio."
Published under Cement News
