17.04.2015 07:14:00
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Holcim and Lafarge Propose Final Asset Disposals in the US
Regulatory News:
Lafarge (Paris:LG) and Holcim announce further details on the package of assets they propose to divest in the United States, as part of their planned merger to create LafargeHolcim.
The divestments include:
- Lafarge 1.1MT Davenport cement plant (Iowa) and 7 terminals along the Mississippi River to be sold to Summit Materials ("Summit”)1 for a total consideration of $450 million [equivalent to €420 million] in cash plus Summit’s Bettendorf, Iowa cement terminal
- 3 Holcim terminals in Michigan and Illinois
- Holcim Skyway 600kt slag grinding station in Illinois
- Holcim Camden 700kt slag grinding station in New Jersey, along with a terminal in Massachusetts
These proposed divestments have been negotiated with the staff of the Federal Trade Commission, and remain subject to review and approval by the Commission.
The divestments will be completed subject to acceptance by the Commission and to the closing of the merger between Holcim and Lafarge.
They will be carried out in the framework of the relevant social processes and ongoing dialogue with the employee representatives’ bodies.
The closing of the planned merger is expected in July 2015, aiming to create the most balanced and diversified portfolio in the industry, operating in 90 countries and creating superior value for its stakeholders.
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1 Total Lafarge divestment package: $46.5 million 2014 EBITDA and $270 million 2014 net asset value
About Holcim
Holcim is a global leader in the manufacture and distribution of cement and aggregates (crushed stone, gravel, and sand), as well as other activities, including ready-mix concrete, asphalt, and associated services. The company holds majority and minority shareholdings in some 70 countries and on every continent. In 2013, Holcim recorded net sales of over 19.1 billion Swiss francs. Thanks to our market-oriented structures, product innovations, skilled employees and efficient environmental management systems, Holcim is in a strong position now - and for years.
More information is available on Holcim website site: www.holcim.com
About Lafarge
A world leader in building materials, Lafarge employs 63,000 people in 61 countries, and posted sales of €12.8 billion in 2014. As a top-ranking player in its Cement, Aggregates and Concrete businesses, it contributes to the construction of cities around the world, through its innovative solutions providing them with more housing and making them more compact, more durable, more beautiful, and better connected. With the world’s leading building materials research facility, Lafarge places innovation at the heart of its priorities in order to contribute to more sustainable construction and to better serve architectural creativity.
More information is available on Lafarge's website: www.lafarge.com
Important information
This communication does not constitute an offer to purchase or exchange or the solicitation of an offer to sell or exchange any securities of Lafarge or an offer to sell or exchange or the solicitation of an offer to buy or exchange any securities of Holcim. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Lafarge or Holcim.
Forward-Looking Statements
This communication contains forward-looking information and statements about Holcim, Lafarge and their combined businesses after completion of the proposed transaction that have not been audited or independently verified. Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations. Although the managements of Holcim and Lafarge believe that the expectations reflected in such forward-looking statements are reasonable, investors and holders of Holcim and Lafarge shares are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Holcim and Lafarge, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. The combined group may not realize the full benefits of the transaction.
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