After acquiring a slim majority in Cemento de El Salvador S.A. de C.V. (CESSA) at the end of 2004, Holcim made a buyout offer to the remaining shareholders at the same price of USD 7.35 per CESSA share. More than 300 shareholders accepted the offer. Holcim's investment of USD 220 million increases its participation from 20.3 percent to 64.2 percent.
CESSA is a leading cement manufacturer in Central America and the market leader in El Salvador, operating two cement plants in the North East of El Salvador and seven distribution centers that serve all of the country's markets. Both plants have an installed annual cement production capacity of 1.8 million tonnes. In 2004, the company recorded sales of USD 119 million and an operating profit of USD 40 million.
In increasing its participation in CESSA, Holcim is taking a further logical step toward strategically strengthening and enhancing its network of positions in Central America. The Group now owns three cement plants, two grinding stations, a terminal and significant ready-mix concrete and aggregate operations in Costa Rica, Nicaragua, Panama and El Salvador. Furthermore, Holcim holds substantial minority interests in cement producers in Honduras and Guatemala.
* * * * * * *
Holcim is one of the world's leading suppliers of cement, aggregates (crushed stone, gravel and sand), concrete and construction-related services. The Group holds majority and minority interests in more than 70 countries on all continents.
* * * * * * *