Lafarge acquires Orascom Construction Industries Cement Group 
(19/12/2007)
The Board of Directors of Lafarge has approved the acquisition by Lafarge of Orascom Construction Industries Cement Group, and the principle of board representation for Groupe Bruxelles Lambert and Nassef Sawiris, majority shareholder with his family of Orascom Construction Industries.
This transaction is expected to bring:
* A leading position in the Middle East and the Mediterranean Basin
* Cement capacity of 35 million tons in 2008 increasing to 45 million tons in 2010, with state-of-the-art assets
* Projected annual sales growth of 30% and annual EBITDA growth of 33% (2007-2010)
* Operating margin of over 40% in 2008 thanks to very low production costs
* Projected sales of $2.6 billion and EBITDA of $1.3 billion in 2008
* Superior cash flow generation with Free cash flow over $1 billion in 2008
* Price of €8.8 billion for 100% of Orascom Cement, assumption of €1.4 billion in net debt
* Financed through €6.0 billion of debt and the issuance to Nassef Sawiris of 22.5 million new Lafarge shares at €125 per share (€2.8 billion)
* Long-term investment by Nassef Sawiris with a 11.4% shareholding in Lafarge
* The acquisition will strongly enhance growth, margins and cash flows
* Synergies of more than €150 million a year
* Accretive to earnings per share from year 1
* Transaction ROCE higher than Lafarge’s cost of capital in 2008
* Optimization of Lafarge’s financial structure
Related categories: Concrete Production, Transport and Finishing
