Lafarge to sell gypsum operations
Company announces project to sell European and South American gypsum operations to Etex Group
LAFARGE have entered into exclusive negotiations with Belgium-based Etex Group for the sale of their European and South American gypsum assets at an enterprise value of €1 billion.
Under the proposed agreement, Lafarge would receive net cash proceeds of approximately €850 million as well as a 20% interest in the new partnership, which would combine the European and South American gypsum activities of both groups.
Lafarge’s European and South American Gypsum division manufactures gypsum wallboard and other gypsum-based products, such as plaster, joint compounds and plaster blocks. In 2010, these operations generated consolidated sales of €895 million and EBITDA of €115 million.
Completion of the project is subject to the approval of the relevant anti-trust authorities. Contractual rights specify that Lafarge could sell their 20% interest to Etex Group after five years.
Bruno Lafont (pictured), chairman and chief executive officer of Lafarge, said: ‘This project unlocks immediate value for the Group while allowing Lafarge to participate in the new entity’s future success.
We are very pleased of the future prospects of this reinforced partnership with Etex Group – a strong industrial company with expertise in building materials and systems.
‘This operation is positive for Lafarge and its shareholders and will contribute to the strengthening of the Group’s balance sheet and to the optimization of its portfolio.’
Meanwhile, Lafarge have already agreed the sale of their Australian Gypsum operations, which comprise two manufacturing facilities for gypsum wallboard and other compounds, together with a national network of distribution and retail centers, to building materials manufacturers Knauf for net proceeds of €120 million. Completion of this deal is expected during the third quarter of 2011.
