First publishedon www.AggBusiness.com
Group has finalised its acquisition of Brazilian cement manufacturer and quarry operator Cimento Planalto (Ciplan).
French-based cement, concrete and aggregates group Vicat previously signed a binding agreement with Ciplan's shareholders in October 2018. Following the completion of the transaction it now holds a majority stake of 64.74% in Ciplan.
Ciplan operates a modern plant in the vicinity of Brasilia with a total installed cement capacity of 3.2 million tonnes per year. The company also has nine ready-mixed concrete plants and five quarries (including 2 aggregates quarries).
Vicat says the acquisition reflects its targeted external growth and geographical diversification strategy, through the entry into a new emerging market which has a strong growth outlook.
To fully capture the Brazilian market's growth potential, Vicat says it will leverage Ciplan's performing industrial asset base, coupled with its strong brand.
Vicat adds that it will provide more information on the transaction details when reporting the group's 2018 financial results, scheduled for February 19.
The Ciplan transaction has been structured through a reserved capital increase of €295 million, and proceeds will be used to settle a vast majority of Ciplan's existing debt. The transaction was funded through debt.
The Vicat Group has over 8,000 employees working in three core divisions: cement, concrete & aggregates, and other products & services. The three divisions generated consolidated sales of €2,563 million in 2017. The group operates in twelve countries: France, Switzerland, Italy, the United States, Turkey, Egypt, Senegal, Mali, Mauritania, Kazakhstan, India and Brazil. Almost 68% of its sales are generated outside France.