The Group has divested more than € 230 million since January 1st, 2009.
Lafarge announces the divestment of its Cement, Concrete and Aggregates activities in Marmara and West Black Sea Regions in Turkey to the leading Turkish company in the cement sector, OYAK Cement Group, for an enterprise value of 163 million €, representing 10 times 2008 Ebitda.
Lafarge Marmara and West Black Sea operations are comprised of one cement plant in Darıca-Kocaeli, one cement grinding station in Karadeniz Eregli - Zonguldak, nine ready-mix concrete plants and three aggregate quarries.
The Share Sale Agreement includes 97.3% of Lafarge Aslan and of its controlled subsidiaries, including Lafarge Eregli controlled at 98,65 % and Lafarge Beton controlled at 97,95% by Lafarge. It will be submitted to the Turkish Competition Board for approval.
Lafarge will continue to own a cement plant in the Eastern Region and remains also present with its gypsum activity through a joint venture with Dalsan and with a minority share holding in Baticim in Aegean region.
Lafarge's ongoing divestment plan
This divestment is part of the Group's objective of €1 billion divestment plan in 2009.
As part of this plan, Lafarge has recently sold several assets in its three divisions, notably its Asphalt assets in the Atlantic provinces of Canada to Halifax based Municipal Enterprise Company and its Aggregate and Concrete activities in the Zurich region of Switzerland to the Eberhard Group for a total of € 69 M.
Assets in eastern Canada covered by this operation are four fixed Asphalt plants and one portable Asphalt Plant. Divested assets in Switzerland include two aggregate quarries, two ready mix plants and 1 mortar plant.
In total, the Group has divested more than € 230 Million since January 1st, 2009.
Notes to editors
OYAK Cement Group is the leading cement producer in Turkey with annual clinker capacity of 7.3 Million Tons and cement capacity of 14.1 Million Tons. Group companies, Adana, Bolu, Unye and Mardin Çimento, have operations in 6 geographical regions and finalized 2008 with 8.2 Million Tons of total cement sales. Along with the cement companies, OYAK Beton is the ready mix concrete arm of the group and OYKA Kağıt is the sole producer of kraft paper and paper sacks in Turkey.
OYAK Ordu Yardımlaşma Kurumu (Armed Forces Pension Fund), incorporated as a private entity under its own law, provides its members with supplementary retirement benefits. OYAK has equity investments in 26 companies, including OYAK Renault, the leader in automotive sector and Erdemir, the leader of iron and steel industries in Turkey.
About Lafarge in Turkey
Lafarge entered the Turkish market in 1989 by acquiring 97.3 % of the shares of Lafarge Aslan Çimento. The Group penetrated the ready mix concrete market in 1991 and has developed its cement activities in 1992 in Karadeniz Ereğli and Ankara. In 1998, Lafarge continued its development with aggregates operations and entered the gypsum and plasterboard market with Dalsan. The Van Cement Plant joined the Lafarge Turkey after the acquisition of Orascom Cement in 2008.
Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum. With more than 84,000 employees in 79 countries, Lafarge posted sales of Euros 19 billion in 2008.
In 2009 and for the fifth year in a row, Lafarge was listed in the ‘Global 100 Most Sustainable Corporations in the World'. With the world's leading building materials research facility, Lafarge places innovation at the heart of its priorities, working for sustainable construction and architectural creativity.