Birla Corporation Limited (Birla Corp) announced that it has agreed to acquire Jojobera and Sonadih cement businesses from Lafarge India for an Enterprise Value of Rs. 5,000 crores.
As per the company, transaction would be funded through existing cash reserves and incremental debt. The acquisition is subject to approvals including clearance from the Competition Commission of India.
With this acquisition, Birla Corp will acquire an integrated cement unit at Sonadih (Chhattisgarh), a cement grinding unit at Jojobera (Jharkhand), along with Concreto and PSC brands and an excellent management team.
Birla Corp is part of the MP Birla Group with presence across cement and jute; cement constitutes over 90% of the company’s revenues.
Post acquisition, Birla Corp will have a total capacity of ~15 mtpa. The company has units in Rajasthan, Madhya Pradesh,Uttar Pradesh and West Bengal.
As per LafargeHolcim, The proceeds from the sale of the divestment business will be used to further reduce company’s debt.
LafargeHolcim is the world leader in the building materials industry. The group company has presence in 90 countries, 115,000 employees around the world and combined net sales of CHF 33 billion (EUR 27 billion) in 2014.
Shri Harsh V Lodha, Chairman of Birla Corp, said: “I am very pleased to announce this very important transaction in Birla Corp’s history. The Acquisition Business, together with the Concreto and PSC brands, perfectly fit into our strategic vision and ambition of enhancing our competitiveness in our chosen markets. I am glad to welcome new talent and leaders to our Group, who share our convictions and professional culture”.