Lafarge takes 100% control of Lafarge Braas Roofing

01.03.2000
 

LAFARGE, which has held a 56.5% stake in Lafarge Braas GmbH since the acquisition of Redland late in 1997, has now acquired the remaining 43.5% of capital held by minority shareholders. Lafarge Braas GmbH incorporates all the European operations of the Group's Roofing Division.

The shareholders had informed the Group of their intention to divest their interest. The operation, which was concluded on the basis of a payment principally in the form of Lafarge stock (5.7 million shares plus €81 million in cash), will be accretive immediately, and will generate value for the Group. It is possible that an additional payment may be made to the sellers, calculated on the basis of results between 2000 and 2002.

Certain restrictions will apply to the subsequent disposal of the newly acquired shares, which will be subject to consultation with Lafarge. Of the 5.7 million shares involved, 2.5 million were Lafarge treasury shares. The remaining 3.2 million will be subject to a capital increase requiring the approval of the extraordinary general meeting of shareholders in May 2000.

 

"This transaction has been concluded under very favorable conditions for Lafarge," stressed Bertrand Collomb, Chairman and Chief Executive of the Group. "It has occurred at a point when the German construction market has just come through the bottom of its cycle and economic prospects herald the start of a recovery in 2000."

 

In Europe, the United States and the emerging countries, the Roofing Division constitutes a growth sector for Lafarge in each of its businesses: roof tiles, roofing accessories and chimneys. It employs 12,000 people on 200 sites throughout the world, and generated sales of almost €1.6 billion (FRF 10.3 billion) in 1998.

World leader in construction materials, Lafarge holds top-ranking positions in each of its five Divisions: Cement, Aggregates & Concrete, Roofing, Gypsum and Specialty Products. The Group employs 66,000 people in more than 65 countries and generated sales of almost €10 billion (FRF 64.3 billion) in 1998.

 

The press release (pdf, 44.3 KB)