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Ireland's CRH to buy Lafarge, Holcim assets for $7.4 billion

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Staff writer ▼ | February 2, 2015
Holcim and Lafarge announce a project to sell assets to CRH for an enterprise value of EUR 6.5 Bn [CHF 6.8 Bn] in the context of their planned merger.
CRH
Lafarge and Holcim   A step closer to completing $40 billion merger
As part of their proposed merger, Lafarge and Holcim announce they entered exclusive negotiations further to a binding commitment made by CRH regarding the sale of several assets. The assets include operations mainly in Europe, Canada, Brazil and the Philippines.

Taken together, the assets being disposed under the terms of today's announcement generated estimated 2014 sales of EUR 5.2 billion, with an estimated 2014 operating EBITDA of EUR 744 million.

The enterprise value of EUR 6.5 billion [CHF 6.8 billion] reflects the value of these high quality assets.

"The projected transaction is a key step towards the creation of LafargeHolcim and the value offered reflects the strong quality of the selected assets. This successful outcome demonstrates the quality of the collaborative work undertaken by Holcim and Lafarge teams.

With this announcement, we remain firmly on track to complete our proposed merger in the first half of 2015", commented Wolfgang Reitzle, designated Chairman of the Board of Directors of LafargeHolcim and Bruno Lafont, designated CEO of the future combined company.

The two companies are disposing of the following assets in Europe:

France: in metropolitan France, all of Holcim's assets, except for its Altkirch cement plant and aggregates and ready-mix sites in the Haut-Rhin region, and a grinding station of Lafarge in Saint-Nazaire; Lafarge's assets on Reunion island, except for its shareholding in Ciments de Bourbon
Germany: Lafarge's assets
Hungary: Holcim's operating assets
Romania: Lafarge's assets
Serbia: Holcim's assets
Slovakia: Holcim's assets
United Kingdom: Lafarge Tarmac assets with the exception of Cauldon plant and certain associated assets

Outside Europe the two companies are disposing of the following assets:

Canada: Holcim's assets
United States: Holcim's Trident cement plant (Montana) and some terminals in the Great Lakes area
The Philippines: the shares of Lafarge Republic, Inc. (LRI) from, and other specific assets of, the major shareholders (namely Lafarge Holdings Philippines, Inc., South Western Cement Ventures, Calumboyan Holdings, Inc., and Round Royal, Inc.), except LRI's (i) investment in Lafarge Iligan, Inc., Lafarge Mindanao, Inc. and Lafarge Republic Aggregates, Inc., (ii) Star Terminal at the Harbour Center, Manila, and (iii) other related assets.
Brazil: assets from both Holcim and Lafarge, which include 3 integrated cement plants and 2 grinding stations (with a total of 3.6 Mt annual cement capacity), as well as some ready-mix plants located in the Southeastern region of Brazil.


 

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