After acquiring a slim majority in Cemento de El Salvador S.A. de C.V. (CESSA) at the end of 2004, Holcim made a buyout offer to the remaining shareholders at the same price of USD 7.35 per CESSA share. More than 300 shareholders accepted the offer. Holcim’s investment of US$220m increases its participation from 20.3 per cent to 64.2 per cent.
CESSA is a leading cement manufacturer in Central America and the market leader in El Salvador, operating two cement plants in the North East of El Salvador and seven distribution centers that serve all of the country’s markets. Both plants have an installed annual cement production capacity of 1.8Mt. In 2004, the company recorded sales of US$119m and an operating profit of US$40m.
In increasing its participation in CESSA, Holcim is taking a further logical step toward strategically strengthening and enhancing its network of positions in Central America. The Group now owns three cement plants, two grinding stations, a terminal and significant ready-mix concrete and aggregate operations in Costa Rica, Nicaragua, Panama and El Salvador. Furthermore, Holcim holds substantial minority interests in cement
roducers in Honduras and Guatemala.