The Lafarge Group has announced the sale of its cement operations in Honduras to Cementos Argos for a total enterprise value of €435 million. The transaction is subject to relevant regulatory approvals.
Argos acquired 53.3% of the shares of the company Lafarge Cementos Honduras, which is comprised of an integrated cement plant at Piedras Azules, near Tegucigalpa, as well as a clinker mill and its accompanying port facilities located in San Lorenzo, on the Pacific Ocean. As a result of this agreement, Cementos Argos will increase its annual cement production capacity by 1.3 million t, which represents a rise of 8%, for an estimated total of 17 million t.
Cementos Argos was able to raise funds to purchase the company following the successful placement of preferred shares last May. The transaction enables Cementos Argos to increase its presence in this region. The assets generate an EBITDA of some US$65 million pa.
“The acquisition of these assets allows us to continue working on the company’s process of expansion and geographical diversification, participating in a market with an interesting growth potential that stems from its strategic location, its opportunities to implement Argos’ competitive business model, and the growth potential of the country itself,” says Jorge Mario Velásquez, CEO of Argos.
Adapted from press releases by Katherine Guenioui
Read the article online at: https://www.worldcement.com/the-americas/03092013/lafarge_honduras_cementos_argos_144/