Buzzi Unicem strengthens position in Italy

Buzzi Unicem strengthens position in Italy
19 June 2017

Buzzi Unicem is expanding its position in northen Italy with the acquisition of Cementizillo SpA. A total of 47.9 per cent of Cementizillo’s share capital has just been acquired and the remaining 52.1 per cent will be purchased from Mr AG Zillo, the sole director, in early July.

Some of the purchase price of EUR60m will be deferred, but only in respect of Mr Zillo, and an additional amount may become payable if the average cement price over the 2017-2020 period were to exceed a certain level.

Cementizillo, which until recently operated three cement plants, now has two integrated cement works, at Moncelice and at Fanna, and cement and clinker sales amounted to some 1.1Mta in 2016. In 2015, Cementizillo had a 4.3 per cent share of the Italian cement market. The 39 batching plants produced around 0.44Mm³ last year.

In 2016, the Zillo group generated a turnover of EUR90m and a recurring EBITDA of around EUR5m. There was a trading loss of EUR4m and a net loss of EUR6m. Net debt at the end of December stood at EUR46m. This del marks a further concentration in the still very fragmented Italian cement market.

Published under Cement News