Helwan Cement, a subsidiary of HeidelbergCement, has agreed with Emaar Industries to sell its white cement plant, located in Minya, Egypt.
Valued at an EV/EBITDA multiple of 10.9, the deal is subject to customary conditions and a de-merger of the white cement plant from Helwan Cement. This is expected to occur in 4Q18 or 1Q19.
“As a niche product with small volumes, the standalone production of white cement does not fit to the strategic focus of HeidelbergCement,” said Dr Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement. “The disposal is part of our global portfolio review and optimisation, with the goal to generate additional cash flow in order to support our disciplined growth and increase shareholder returns.”
This announcement comes after HeidelbergCement disposed of its white cement business in the US, in February of this year. Its 51% stake in Lehigh White Cement Company was sold to minority shareholders.
HeidelbergCement is a world leading integrated manufacturer of building materials, with leading market positions in aggregates, cement, and ready-mixed concrete.
Read the article online at: https://www.worldcement.com/africa-middle-east/27092018/heidelbergcement-to-sell-white-cement-plant-in-egypt/