CRH to purchase 49% stake in Portuguese Secil

Building materials giant CRH today announced that it has reached an agreement to acquire a 49% equity stake in Secil, a Portuguese manufacturer of cement and ready-mixed concrete.

Secil is a subsidiary of Semapa, a publicly quoted company in Portugal. Semapa and CRH have also agreed the terms of a shareholder agreement under which they will have joint management control of Secil.

The agreement is based on a value of €900m for 100% of Secil, including an estimated €44m relating to Secil’s investment in associated undertakings.

Subject to approval from the European Commission, the transaction is expected to close by mid-year.

Secil employs around 2000 people and operates three integrated cement plants in Portugal with total capacity of 4.2 million tonnes, 41 ready-mixed concrete plants and six hard rock quarries.

The company also has access to permitted stone reserves of around 550 million tonnes.

Secil is also a prominent producer of cement in southeastern Tunisia where it has one plant with capacity of 1.1 million tonnes.

In addition, Secil has a number of investments in associated undertakings in Portugal and Lebanon and has a management contract to operate a cement-grinding facility in Angola.

In 2003, Secil reported turnover of €418m and profit before interest, tax, depreciation and amortisation (EBITDA) of €123m.

Commenting on the proposed transaction, Liam O’Mahony, Chief of CRH said: “This transaction presents a unique strategic opportunity for the Europe Materials Division.

"It offers a leadership position in the attractive Portuguese cement market, which has traditionally had high per-capita consumption, and also provides development opportunities in Tunisia and Lebanon".