Elementia, SAB de CV has announced that its Board of Directors has given its final approval for the completion of the acquisition of a 55 per cent stake and full control of Giant Cement Holding Inc, USA. Elementia will acquire the controlling stake from Cementos Portland Valderrivas SA for US$220m.
Elementia used proceeds obtain from he capital increase through a Rights Offering to complete the US$220m deal, resulting in an implied equity value of US$400m. The company then granted Giant Cement a loan of US$305m to provide it with US$525m to pre-pay 100 per cent of its current debt. The debt replacement will reduce Giant Cement’s financial costs by more than 75 per cent.
With the completion of the deal, Elementia adds a further three plants with a total of 2.8Mta production capacity to its portfolio, as well as three limestone quarries, two aggregates quarries and six cement terminals.
Fernando Ruiz Jacques, CEO, said: “Today marks a major milestone for Elementia as we successfully enter the US cement market and take another solid step within our inorganic growth strategy.”
