Lafarge has agreed with Boral to sell them its stake in their common Asian Gypsum joint venture Lafarge Boral Gypsum Asia (LBGA) for €429 million, which represents the enterprise value of Lafarge’s 50% stake in the joint venture.
Formed in 2000, LBGA is a 50/50 joint venture between Lafarge and Boral. The company is a leading supplier of plasterboard and other gypsum-related products across Asia, operating throughout 10 countries with 20 production facilities and employing approximately 2100 people. In 2010, LBGA’s sales Group share accounted for €181 million, with an EBITDA Group share of €31 million.
The deal is expected to be completed before the end of the year.
Lafarge recently released its 2011 second quarter report, which showed strong cement volume growth in emerging markets in the context of a high cost inflation environment.
Lafarge has announced the sale of its Australian gypsum business to Knauf for €120 million. The news follows the company’s recent negotiations with Etex Group to sell its European and South American gypsum operations for an enterprise value of €1 billion.