Henning Bæk CFO
Aalborg Portland Holding A/S
Tel.: + 45 9816 7777
Rome, 14 February 2018
Cementir Holding to expand its presence in the United States
Cementir Holding announces that its American subsidiary Aalborg Cement Company Inc. has signed an agreement with Lehigh Cement Company LLC, a subsidiary of HeidelbergCement AG, to acquire an additional 38.75% stake in Lehigh White Cement Company (“LWCC”), the leading supplier and distributor of white Portland cement in the U.S., for a cash consideration of USD 106.6 million, on a cash and debt-free basis. After this transaction, Cementir group will hold a stake of 63.25% in LWCC, while the remaining 36.75% will be owned by Cemex Inc. The closing of the transaction, subject to customary conditions, is expected by the end of March 2018. Antitrust clearance has already been obtained.
“This acquisition gives us the opportunity to directly manage assets in the United States in our core white cement business, reinforcing our global leadership and supporting our growth strategy”, commented Francesco Caltagirone Jr., Chairman and CEO of Cementir Holding.
LWCC operates two white cement plants located in Waco (Texas) and York (Pennsylvania) with a total capacity of around 255,000 tonnes per year as well as a distribution network throughout the U.S. which is also used to distribute white cement imported from its partners in all North America. In 2017 LWCC reached gross sales of USD 149 million and EBITDA of USD 26 million (preliminary figures not yet approved by LWCC’s Board of Directors) and employs 140 people.