Skip to main content

Buzzi Unicem buys Zillo Cement

Published by , Assistant Editor
World Cement,

Buzzi Unicem SpA has signed a mandatory agreement to buy 100% of the share capital of Cementizillo SpA. The agreement has been signed by Alvise Gino Zillo M. X., as sole director of the majority shareholder Giovanni Zillo M.X. & C. Srl, holding 52.1% of the share capital. As part of the agreement, Buzzi Unicem has also purchased 47.9% of the share capital of Cementizillo SpA directly from the minority shareholders. The remaining 52.1% is expected to be acquired on the first days of July, following the prior settlement of some non-core assets that do not lie in the interest of Buzzi Unicem.

Zillo is a leading industrial group, founded in 1882 and focused on the cement and ready-mix concrete industry in north-east Italy. It operates with two full-cycle cement plants and about 40 batching plants. In 2016, Zillo’s cement and clinker sales came in at approximately 1.1 million t, with ready-mixed concrete volumes of about 440 000 m3.

The agreed amount of the share purchase forsees a fixed portion, equal to €60 million plus 450,000 Buzzi Unicem ordinary shares already in treasury, and a variable portion that may range from a minimum of €0 (zero) to a maximum of €21 million, depending on the trend of the average cement price achieved by Buzzi Unicem in Italy in the years from 2017 to 2020. The variable portion is unpredictable and payable to the majority shareholder only. The acquisition is supported by usual warranties for similar transactions, 100% issued by the majority shareholder.

The payment of the minority shareholders has been carried out today for €22.6 million. The payment of the 52.1% stake will be made for €19 million at the closing date together with the transfer of the 450,000 Buzzi Unicem ordinary shares; for €3.4 million 120 days after the closing date, considering an adjustment based on the changes in working capital and net financial position occurred between 31 December 2016 and the closing date; for €7.5 million one year after the closing date and, finally, for another €7.5 million three years after the closing date. The commitments already borne as well as the ones planned for the completion of the transaction will be funded through cash and/or existing credit facilities that are immediately available.


Through this acquisiton, Buzzi Unicem aims to contribute to the rationalisation and consolidation of the domestic market sector, which suffers from a surplus of production capacity and permanently reduced sales volumes, as well as strengthening its presence and market share in Italy.

Read the article online at:

You might also like

Cementos Molins unveils new corporate identity

The new Molins brand consolidates its various existing commercial brands in Spain under a single identity. Molins also launches Susterra, its new range of sustainable solutions.


Embed article link: (copy the HTML code below):