The new logo of Swiss cement maker Holcim is seen in a block of concrete during the Holcim Capital Markets Day event in Basel, Switzerland, November 18, 2021. REUTERS
ZURICH, Dec 16 (Reuters) – Holcim on Tuesday said it was paying $550 million for a majority stake in Peruvian building materials maker Cementos Pacasmayo, as the Swiss cement maker looks to expand its presence in South America.
Holcim is taking a 50.01% stake in Cementos Pacasmayo, in the deal which values the Peruvian company at $1.5 billion including debt or $1.1 billion equity value.
Under Peruvian takeover law Holcim will have to make an offer for more of the company, and is expected to increase its stake, the Swiss firm said.
Cementos Pacasmayo has expected sales of $630 million for 2025 with an earnings before interest, tax, depreciation and amortisation margin of 28%.
The deal is Holcim’s 15th acquisition of 2025, as the company looks to focus more on South America and Europe after spinning off its North American business into a separate company called Amrize.
Peru is seen as an attractive market for construction companies because of a large housing shortage and a need to invest in infrastructure.
Holcim entered the Peruvian market last year and has bought three other construction companies in the country.
Reporting by John Revill Editing by Dave Graham
