Lafarge SA has completed the sale of a controlling stake in its roofing-tile business to Paris-based private equity firm PAI Partners.
The sale, which values Lafarge Roofing at EUR2.4 billion, was announced in December.
As previously announced, Lafarge, the world’s largest cement maker, will keep a 35% stake in the roofing business alongside PAI Partners in order "to take part in (the business’) future success," Lafarge Chief Executive Bruno Lafont said.
Besides clay and concrete roofing tiles, Lafarge Roofing also makes roofing components and chimneys. The business had revenue of EUR1.6 billion last year and employes 12,000 people.
Lafarge first said it would consider selling its roofing business last June and the sale attracted interest from a number of investment firms.
The business had long been a drag on Lafarge’s profitability because of an extended building slump in Germany, it’s most important market, but restructuring efforts have begun to pay off.
Last week Lafarge said the business’s operating profit rose 43% in 2006 to EUR131 million, as higher prices and cost controls offset still weak demand.