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HeidelbergCement to grow position in Italy

Dr Bernd Scheifele

Italcementi to acquire Cementir Italia’s cement and concrete business for €315 million

TODAY, HeidelbergCement announced that their Italian subsidiary, Italcementi, has entered into an agreement with Cementir Holding to buy Cementir Italia, including the fully controlled subsidiaries Cementir Sacci and Betontir.

The acquisition, which includes all of Cementir Italia’s cement and concrete business, has an enterprise value of €315 million. Closing of the transaction, which is subject to final approval by the Italian Antitrust Authority, is expected in early 2018.

‘Cementir Italia provides an ideal industrial and geographic fit that significantly improves our nationwide presence in Italy,’ explained Dr Bernd Scheifele (pictured), chairman of the managing board of HeidelbergCement.

‘For Italcementi, the acquisition is a unique opportunity to grow and consolidate their position in the Italian market. We see strong recovery potential in Southern Europe and especially in Italy over the coming years.

‘With this acquisition we are very well positioned to create value through synergies, efficient processes, and the offer of high-quality and innovative products. The acquisition is part of our strategy of disciplined growth and increasing shareholder returns.’

Cementir Italia’s business includes five integrated cement plants and two cement grinding centers with a total capacity of 5.5 million tonnes per year, as well as a network of terminals and concrete plants, all operating in Italy.

Italcementi will fully integrate the operations into their current network, thereby expanding their position in the Italian market. Minimum annual run-rate cost synergies of €25 million are expected to be achieved by 2020.

The acquisition will be financed with free cash flow, and net investments for the years 2017 and 2018 will remain unchanged. To offset the acquisition, HeidelbergCement say they intend to dispose of non-core assets within their broader portfolio review.

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