Lafarge Corporation, the North American subsidiary of the Lafarge Group, and the Canadian Kilmer Van Nostrand Co. Ltd. (KVN) have reached an agreement to merge KVN's subsidiary, The Warren Paving & Materials Group Limited, with Lafarge's aggregates, asphalt and paving operations in Canada. Warren is a large supplier of construction aggregates, asphalt and paving services Canada.
The Warren Paving & Materials Group Limited operates nearly 80 sites in the provinces of British Columbia, Alberta, Saskatchewan, Ontario and Quebec. It owns or has rights to reserves in excess of one billion tons of aggregate, and produces approximately 17.5 million tons of aggregate per year. In addition, the company produces 4.2 million tons of paving materials for highway and street construction. With more than 2,500 employees in the country, The Warren businesses generated sales in excess of CDN$500 million (360 million euros) in 1999.
The transaction, valued at approximately CDN$425 million (300 million euros), will make Lafarge one of the largest aggregate suppliers in North America, with over 90 million tons of production a year.
The transaction, which is subject to conditions including due diligence and approval by Canadian regulatory authorities, is expected to close this fall.
In 1999, North American share of Lafarge sales rose to 2.7 billion euros, which is 26% of total Group sales. World leader in construction materials, Lafarge employs 71,000 people throughout 70 countries and generated total sales of 10.5 billion euros in 1999.
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