- Expected sustainable additional operating EBITDA and synergies of at least EUR 20 million from interlinked transactions with Cemex
- Holcim to acquire operations from Cemex in Western Germany to strengthen its presence in the country and to connect its current operations in Northern Germany with France Benelux
- Holcim to divest Holcim Česko to Cemex
- Holcim and Cemex to combine all their operations in Spain with Holcim taking a 25 percent shareholding, thereby adding value to its business and benefiting from synergies
- Holcim to pay Cemex EUR 70 million in cash as part of the interlinked transactions
Holcim today announces a series of interlinked transactions to be undertaken in conjunction with Cemex. They will lead to a further optimization of the Group’s European footprint and allow it to adapt to the new economic realities. Holcim expects sustainable additional operating EBITDA of at least EUR 20 million as a result of these transactions.
In Germany, Holcim will purchase operations in the western part of the country - in particular in North Rhine-Westphalia, one of the country’s most prosperous areas. The transaction includes one cement plant, two grinding stations (total cement capacity of 2.5 million tonnes), one slag granulator, 22 aggregates locations and 79 ready-mix plants. They will be combined with Holcim’s existing Northern German operations.
Germany is a market with a strong economy and solid perspectives where Holcim wants to increase its footprint. This move will allow the Group to better connect its operations in Northern Germany and also in France Benelux and is expected to yield synergies in the supply chain.
Cemex will take over Holcim Česko. Those operations include one cement plant (cement capacity 1.1 million tonnes), four aggregates locations and 17 ready-mix plants. Holcim will continue to serve customers in the Czech Republic from the Rohoznik plant in Slovakia.
In Spain, Cemex and Holcim will combine their operations in cement, ready-mix and aggregates. Holcim will hold a shareholding of 25 percent of the combined entity. This combination will enable the Group to add value to its Spanish business and to benefit from synergies. Holcim will remain shareholder for at least five years.
As part of the interlinked transactions, Holcim will pay Cemex EUR 70 million in cash.
“This transaction will significantly strengthen our presence in Germany while at the same time giving us the necessary flexibility in Spain,” says CEO Bernard Fontana. “Overall, our footprint in Europe will be considerably strengthened.”
Filing with the relevant authorities is planned for the coming days. The closing of the transaction, which is foreseen in the fourth quarter of 2013, is contingent on the outcome of the due diligence process and the necessary approvals by the authorities.
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Holcim is one of the world's leading suppliers of cement and aggregates (crushed stone, gravel and sand), as well as further activities such as ready-mix concrete and asphalt including services. The Group has majority and minority holdings in around 70 countries across all continents.
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