Holcim will invest US$550m in a 50.01 per cent holding in Cementos Pacasmayo SA. The deal values the Peru-based cement producer at US$1.5bn, including debt, or US$1.1bn equity value.
The deal is fully in line with Holcim’s NextGen Growth 2030 strategy and a milestone in the expansion of Latin American sales. The acquisition strengthens Holcim’s in the very profitable Latin American markets with a projected sales of US$630m and an EBITDA margin of 28 per cent in 2025.
Cementos Pacasmayo, listed on the Lima and New York stock exchanges, operates three cement plants with a total capacity of around 5Mta, and 28 ready-mix and precast concrete plants. It also operates over 300 DINO retail stores that complement Holcim’s Disensa, the leading construction materials and solutions franchise network in Latin America.
Miljan Gutovic, Holcim CEO, said: “The synergistic acquisition of Cementos Pacasmayo is fully in line with our NextGen Growth 2030 strategy to accelerate growth in the attractive Latin America region. This is an opportunity to continue Cementos Pacasmayo’s exceptional legacy, built on its strong performance culture, its deep commitment to its people and its well regarded brand in Peru. The company is highly cash generative with a complementary portfolio in building materials as well as building solutions. I look forward to welcoming Pacasmayo's 2 000 employees to Holcim and to accelerating growth together.”
The acquisition comes a year after the Swiss company entered Peru, having bought Comacsa, a producer of cement and industrial minerals, Mixercon, a producer of cement and ready-mix concrete, and Compañia Minera Luren, a walling solutions producer.
Under Peruvian takeover law, Holcim will have to make an offer for more of the company and is expected to increase its stake, the Swiss building materials giant said.
