Global building materials group Lafarge has announced its intention to sell its European and South American gypsum operations to Etex Group.
Lafarge announced today (July 14) that it has entered into exclusive negotiations with Etex Group for the sale – including the UK gypsum operations – which will be worth something in the region of 1 billion euros.
Under the proposed agreement – which has to be approved by the anti-trust authorities – Lafarge would receive net cash proceeds of approximately 850 million euros and a 20% interest in the new partnership, combining the European and South American Gypsum activities of both Groups. After five years, this 20% could be sold to Etex.
Lafarge’s European and South American Gypsum division makes gypsum wallboard and other
gypsum-based products such as plaster, joint compounds, and plaster blocks.
In 2010, the operations generated consolidated sales of 895 million euros.
Lafarge chairman and chief executive officer Bruno Lafont said: ” This project unlocks immediate value for the Group while allowing Lafarge to participate in the new entity’s future success. We are very pleased of the future prospects of this reinforced partnership with Etex Group, a strong industrial company with expertise in building materials and systems. This operation is positive for Lafarge and its shareholders and will contribute to the strengthening of the Group’s balance sheet and to the optimization of its portfolio.”