HeidelbergCement says its subsidiary Helwan Cement will sell its white cement plant in Minya, Egypt, to Emmar Industries as it does not fit into the company’s strategic focus on efficiency. The deal is valued at an EV/EBITDA multiple of 10.9x and is expected to take place during Q4 2018 or Q1 2019.
Dr. Bernd Scheifele, chairman of the managing board of HeidelbergCement, says: “The disposal is part of our global portfolio review and optimisation with the goal to generate additional cash flow in order to support our disciplined growth and increase shareholder returns.”
The move follows HeidelbergCement’s decision to dispose of its white cement business in the US in February. The company’s 51% stake in Lehigh White Cement was sold to minority shareholders.
The closing of the transaction is subject to customary conditions as well as the de-merger of the White Cement plant from Helwan Cement, HeidelbergCement adds.
