Lafarge in Sale of European and South American Gypsum Operations

Cleary Gottlieb represented Lafarge in the sale of its European and South American gypsum operations.

Following an open bid process, Lafarge announced on July 14 that it entered into exclusive negotiations with Etex Group for the sale of its European and South American gypsum assets at an enterprise value of 1 billion euros. Under the agreement, Lafarge received (i) net cash proceeds of approximately 850 million euros and (ii) a 20% interest in the new partnership, which combined the European and South American gypsum activities of both groups.

Lafarge’s European and South American Gypsum division manufactures gypsum wallboard and other gypsum-based products such as plaster, joint compounds, and plaster blocks. In 2010, this division generated consolidated sales of 895 million euros and EBITDA of 115 million euros.

The transaction closed on November 4, 2011.

Lafarge is the world leader in building materials, with top-ranking positions in all of its businesses: Cement, Aggregates & Concrete and Gypsum.

Etex Group is an industrial group with headquarters in Belgium that produces and markets high-quality building materials and systems.