Eurovia to acquire Tarmac’s European quarry business
ANGLO American plc have agreed the sale of Tarmac’s construction aggregates businesses in France, Germany, Poland and the Czech Republic to Eurovia, a VINCI subsidiary and a European leader in the construction and maintenance of road and rail transport infrastructures.
The Tarmac assets involved, which include approximately 100 construction aggregate quarries with an annual output of around 30 million tonnes, will increase Eurovia’s aggregate production by 40%.
Eurovia say the acquisition of the Tarmac units will also expand their geographical presence in Europe and strengthen the company’s industrial capacity in countries where its road construction activity is growing strongly.
In addition, the incorporation of the Tarmac sites will bolster vertical integration between Eurovia’s material production and construction business lines by ensuring better diversification of revenue as well as the supply of aggregates for their construction sites.
With operations in 15 countries, Eurovia has 41,500 employees and generated revenue of €8 billion in 2009. Tarmac’s European aggregate quarries employ approximately 1,000 people and generate annual revenues of around €150 million.
Meanwhile, in a separate transaction, Anglo American have agreed the sale of Tarmac’s Polish concrete products business to Innovia/4 LP, a Central European private equity fund advised by Innova Capital.
The combined proceeds of the two transactions are expected to be approximately US$400 million (€293.4 million). Both deals are subject to regulatory clearance by the relevant competition authorities.