Vicat will pay €290 million for a majority 65% stake in Ciplan. The proceeds of the acquisitions will be used to settle the vast majority of Ciplan’s existing debt. The transaction is debt funded and is subject to various conditions precedent.
Ciplan operates an integrated cement plant close to the Brazilian capitol, Brasilia, with an installed capacity of 3.2 million tpy. The company also owns nine ready-mixed concrete plants and five aggregate quarries.
“With this acquisition, Vicat pursues its targeted external growth and geographical diversification strategy through the incursion into a new emerging market, benefitting from strong growth perspectives,” the company said in a statement.
“In order to fully capture the Brazilian market's growth potential, Vicat will leverage a performing industrial asset base, coupled with strong brand awareness, abundant quarry reserves and a solid competitive position in its local markets.”
