Lafarge South Africa Holdings (LSA) is being acquired by South Africa-based mining and materials company, Afrimat, The deal includes all the subsidiaries of the LSA Group, which will become part of Afrimat’s Construction Materials division.
LSA Group, a member of the Holcim Group, currently supplies a range of products to the construction industry, including cement, concrete, aggregates and fly ash. The purchase price for the acquisition of the equity in the LSA Group is US$6m, with an additional ZAR900m (US$48.97m) towards repayment by or on behalf of LSA of an amount owing by LSA to the Holcim Group.
"Operational synergies between the two businesses are substantial, considering Afrimat’s existing national footprint of aggregate quarries, ready-mixed concrete operations and precast manufacturing operations, and we believe that the time is right to strengthen our Construction Materials division," said Andries van Heerden, CEO, Afrimat. "This exciting deal forms part of the Afrimat Group’s ongoing diversification strategy and will increase Afrimat’s offering in the construction industry, by expanding our quarry and ready-mixed concrete operations nationally and allowing for Afrimat to enter the cement value chain competitively."
Lafarge South Africa currently runs two cement plants at Lichtenburg and Randfontein.
