The Swiss building materials group LafargeHolcim with its brands Holcim and Lafarge sells its Brazilian business with an enterprise value of 1.025 billion USD to the Brazilian conglomerate Companhia Siderúrgica Nacional (CSN).
The transaction comprises five cement plants, four grinding plants, six aggregates sites and 19 ready-mixed concrete plants. With the purchase price, Holcim intends to significantly reduce its debt and also invest in the Solutions & Products business based on the acquisition of Firestone.
Buyer expands production volume in Brazil
CSN is traditionally active predominantly in the steel business and the mining sector, but in 2009 it established its own cement business unit and produces about 4.3 million tons of cement per year at sites in Brazil. The transaction will significantly expand the domestic production volume.
Latin America remains growth area for Holcim
Even after the sale in Brazil, Latin America remains a strategic growth region for Holcim: investments were recently made in another clinker production facility in Argentina and in a grinding plant in Mexico. In addition, the Disensa Retail Network is mentioned as a growth area and the introduction of the Firestone GacoFlex line in Mexico shall serve the development of the Latin American business.
Source: https://www.holcim.com/holcim-divests-business-in-brazil
