Swiss building material firm Holcim to sell Brazilian business for $1bn
Holcim Group, a Swiss building material company, has agreed to sell its Brazilian business to Companhia Siderúrgica Nacional (CSN) for $1.025 billion.
The sale includes Holcim’s five integrated cement plants along with four grinding stations, 19 ready-mix concrete facilities, and six aggregates sites.
The buyer — Companhia Siderúrgica Nacional is a fully integrated steel producer in Brazil.
According to Holcim, the deal bolsters its balance sheet, while considerably lowering its debt ratio.
The building material company said that it will advance the optimization of its portfolio and will use the proceeds to invest in its solutions and products business in order to consolidate on its $3.4 billion acquisition of Firestone Building Products.
Jan Jenisch — CEO of Holcim said: “This divestment is another step in our transformation to become the global leader in innovative and sustainable building solutions giving us the flexibility to continue investing in attractive growth opportunities.
“We are pleased to have found a responsible buyer with CSN that will develop the Brazilian business over the long term.”
Holcim said that although it is selling its operations in Brazil, Latin America is a key strategic growth region for the firm.
Recently, the Swiss building material company invested in an additional clinker line in Argentina, a new grinding station in Mexico, and in its Disensa retail network.
Holcim also launched its Firestone GacoFlex line in Mexico as the first step to develop its roofing systems business in Latin America.