HeidelbergCement to sell white cement plant in Egypt
Tuesday, September 25, 2018 - 06:07
Disposal part of global portfolio review and optimization with the aim of generating additional cash flow
HELWAN Cement, a subsidiary of HeidelbergCement, have entered into an agreement with Emaar Industries to sell their white cement plant in Minya, Egypt. The deal is valued at an EV/EBITDA multiple of 10.9x.
‘As a niche product with small volumes, the standalone production of white cement does not fit with HeidelbergCement’s strategic focus on efficiency,’ commented Dr Bernd Scheifele, chairman of the managing board of HeidelbergCement.
‘The disposal is part of our global portfolio review and optimization with the goal of generating additional cash flow in order to support our disciplined growth and increase shareholder returns.’
Closing of the transaction, which is subject to customary conditions as well as the demerger of the white cement plant from Helwan Cement, is expected to occur in the fourth quarter of 2018 or the first quarter of 2019.
In February this year, HeidelbergCement announced the disposal of their white cement business in the US. The company’s 51% stake in Lehigh White Cement Co. was sold to the minority shareholders.