France’s Vicat Group has announced the acquisition of a major stake in Brazil’s Cimento Planalto (Ciplan). The transaction represents a reserved capital increase of EUR290m for a stake of approximately 65 per cent, with the closing of the deal subject to the fulfilment of certain conditions. Proceeds of the agreement will be used to settle a vast majority of Ciplans’ existing debt. 

The company operates a 3.2Mta cement plant in Brasilia, alongside nine ready-mix facilities and five aggregate quarries. It’s cement unit recorded a EBITDA margin of around 24 per cent in 2017, with a utilisation rate of 66 per cent. On the basis of its cement capacity and the transactions parameters, the enterprise value is EUR145/t of cement, without assigning a valuation to the company’s concrete and aggregates activities.

To capture the country’s market growth potential, Vicat will use a performing asset base coupled with strong brand awareness, abundant quarry reserves and a competitive position in its local market, according to a press release.