HeidelbergCement has announced that its subsidiary Helwan Cement has entered into an agreement with Emaar Industries to sell its White Cement plant in Minya/Egypt. The deal is valued at an EV/EBITDA multiple of 10.9x. Closing of the transaction is subject to customary conditions as well as the de-merger of the White Cement plant from Helwan Cement and is expected to occur in Q4 2018 or Q1 2019.
“As a niche product with small volumes, the standalone production of white cement does not fit into the strategic focus on efficiency of HeidelbergCement,” said Dr. Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement. “The disposal is part of our global portfolio review and optimization with the goal to generate additional cash flow in order to support our disciplined growth and increase shareholder returns.”
Already in February, Heidelberg-Cement announced the disposal of its white cement business in the USA. The 51 % stake in Lehigh White Cement Company was sold to the minority shareholders.