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Cementos Portland Valderrivas buys Uniland

05/06/2006

Cementos Portland Valderrivas buys Uniland


Cementos Portland Valderrivas (CPV) has completed the acquisition of 51% of Uniland for 1.092 billion euro.

The transaction, which makes CPV Spain's largest cement group, was signed yesterday in Barcelona. As a result, CPV has taken another step forward in implementing FCC's Strategic Plan.

The deal is expected to be completed by the end of July, once the necessary clearances are obtained from the competition authorities.

The operation comes on the heels of the recent appointment of José Ignacio Martínez-Ynzenga as Chairman of CPV.

Under yesterday's agreement, the other shareholders have a put option to sell another 22.5% of Uniland to CPV at the same price and terms. The option runs for five years.

In 2007 (the first full year of consolidation), the new group will obtain 1.8 billion euro in revenues and over 600 million euro in EBITDA (i.e. an EBITDA margin of 30%).

The operation will be financed entirely with debt, which will enhance CPV's return on equity given its low leverage.

Leader in Cataluña

Uniland is Cataluña's largest cement company and has a strong international presence.

- In Cataluña, it has two cement plants (Els Monjos and Vallcarca), 27 concrete plants, seven aggregate plants and eight quarries.

- A cement plant, four concrete plants and a quarry in Tunisia.

- In Latin America, it operates in Argentina with two cement factories, six concrete plants and two quarries, and in Uruguay it has a cement plant, four concrete plants and one quarry.

- Uniland also has cement terminals in Louisiana (USA) and Ipswich (United Kingdom), and a subsidiary in The Netherlands that specialises in trading.

Uniland reported 447 million euro in revenues in 2005, and 155 million euro in EBITDA.

Spain's largest cement group

Following this acquisition, CPV is Spain's leading cement group and one of the biggest in the world, with 15 cement plants, 170 concrete plants, 63 quarries and 18 mortar plants worldwide, in addition to other assets. Its cement production capacity is 18.8 million tonnes.

CPV's revenues are projected to exceed 1.8 billion euro in 2007, i.e. 85% more than the 978 million euro registered in 2005.

That same year, EBITDA will increase by 90% to over 600 million euro.

Integrating Uniland is expected to save the CPV Group over 20 million euro per year through synergies from the second year onwards.

The operation is a major leap forward for CPV, both quantitatively and qualitatively: as well as rounding out its coverage in Spain by adding a dominant position in the Catalan market, the deal opens new possibilities for international expansion, particularly in the Mediterranean region.