Cementir Holding to expand its presence in the United States by acquiring an additional 38.75% stake of Lehigh White Cement Company and reaching a majority of 63%

The Board of Directors has examined the preliminary consolidated results for 2017

• Revenue: EUR 1,140.0 million up 10.9% compared to the 2016 Consolidated Financial Statements
• EBITDA: EUR 224.2 million up 13.3% compared to the 2016 Consolidated Financial Statements
• EBIT: EUR 142 million, up 50% compared to the 2016 Consolidated Financial Statements
• Net financial debt: EUR 536.6 million (EUR 562.4 million at 31 December 2016)

Rome, 14 February 2018

Cementir Holding to expand its presence in the United States

Cementir Holding announces that its American subsidiary Aalborg Cement Company Inc. has signed today an agreement with Lehigh Cement Company LLC, a subsidiary of HeidelbergCement AG, to acquire an additional 38.75% stake in Lehigh White Cement Company (“LWCC”), the leading supplier and distributor of white Portland cement in the U.S., for a cash consideration of USD 106.6 million, on a cash and debt-free basis. After this transaction, Cementir group will hold a stake of 63.25% in LWCC, while the remaining 36.75% will be owned by Cemex Inc. The closing of the transaction, subject to customary conditions, is expected by the end of March 2018. Antitrust clearance has already been obtained.
“This acquisition gives us the opportunity to directly manage assets in the United States in our core white cement business, reinforcing our global leadership and supporting our growth strategy", commented Francesco Caltagirone Jr., Chairman and CEO of Cementir Holding

LWCC operates two white cement plants located in Waco (Texas) and York (Pennsylvania) with a total capacity of around 255,000 tonnes per year as well as a distribution network throughout the U.S. which is also used to distribute white cement imported from its partners in all North America. In 2017 LWCC reached gross sales of USD 149 million and EBITDA of USD 26 million (preliminary figures not yet approved by LWCC’s Board of Directors) and employs 140 people. The investment will be financed with cash and available credit lines.

Preliminary consolidated results for 2017

The Board of Directors of Cementir Holding SpA, chaired by Francesco Caltagirone Jr., has examined the preliminary consolidated results at 31 December 2017. The complete, definitive results for 2017 are currently being reviewed by the audit firm and will be examined and approved by the Board of Directors at its meeting scheduled for 8 March. Following the agreement for the sale of Cementir Italia SpA and its wholly owned subsidiaries Cementir Sacci SpA and Betontir SpA (the “Cementir Italia Group”) finalised on 2 January 2018, the Group has recorded the effects of the sale as discontinued operations, in accordance with IFRS 5. However, to facilitate analysis of business performance in 2017, operating results are also shown inclusive of the contribution of the Cementir Italia Group.