Displaying items by tag: Ciplan

France: Vicat’s sales were reduced in 2019 by poor markets in Turkey and, to a lesser extent, Switzerland and Egypt. Its sales fell by 1% year-on-year to Euro2.74bn in 2019 from Euro2.58bn at constant scope and exchange rates. Its cement sales volumes dropped by 2% to 22.4Mt from 22.8Mt but its concrete volumes grew by 1.1% to 9.1Mm³ from 9.0Mm³. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) decreased slightly to Euro156m.

“Strong growth in France, the US, Africa and Kazakhstan helped offset difficult market conditions in Turkey and Egypt. Furthermore, in line with our strategy of targeted acquisitions, the purchase of Ciplan in Brazil, in January 2019, allowed the group to continue its international growth in a region offering strong potential by integrating teams and assets of the highest quality,” said chairman and chief executive officer (CEO) Guy Sidos.

The group performed well in France, the US and Italy, especially due to the acquisition of Ciplan in Brazil. Sales in Turkey suffered from a generally poor economic situation. Competition in Egypt and a downturn in the precast concrete market in Switzerland caused problems in these countries respectively.

France: Vicat’s sales have risen due to its acquisition of Ciplan in Brazil. Its sales rose by 4.7% year-on-year to Euro600m in the first quarter of 2019 from Euro573m in the same period in 2018. However, adjusted for the acquisition, its sales remain stable. The group’s cement sales revenue fell by 1.4% to Euro302m when similarly adjusted. Its concrete and aggregate sales rose by 6.6% to Euro225m.

“The rise in prices across all zones has resulted in stable consolidated sales at constant scope and perimeter, despite strong volume erosions in Turkey as a result of the 2018 lira devaluation and of the consequences of highly adverse weather conditions in California. The integration of Ciplan in Brazil is on track amid conditions that are stabilising after several years of major consumption falls,” said chairman and chief executive officer (CEO) Guy Sidos.

By region sales were strong in France, stable in the rest of Europe and Africa and poor in the Americas, Asia and Turkey. Poor weather in California dragged down sales in the US, competition was reported in India and an economic slowdown was reported in Turkey.

Brazil: France’s Vicat Group has completed its purchase of a 65% stake in Cimento Planalto (Ciplan). The transaction was structured through a reserved capital increase of Euro295m. Proceeds will be used to settle Ciplan's existing debt. Ciplan operates a 3.2Mt/yr integrated plant at Sobradinho in Bahia near to Brasilia. It also runs nine ready-mixed concrete plants and five aggregates quarries.

Brazil: France’s Vicat Group has acquired a majority share in Cimento Planalto (Ciplan). It has signed a binding agreement to buy a 65% share for Euro290m through a reserved capital increase. Ciplan will use the proceeds of the share to settle the ‘vast majority’ of its existing debt. Vicat noted that the transaction will be debt funded and its closing is subject to the fulfilment of ‘certain’ conditions.

Ciplan operates a 3.2Mt/yr integrated plant at Sobradinho in Bahia near to Brasilia. It also runs nine ready-mixed concrete plants and five aggregates quarries.

Vicat says that this acquisition is intended to support its targeted external growth and geographical diversification strategy. In order to ‘capture’ the Brazilian market the company plans to leverage an industrial asset base, strong brand awareness, abundant quarry reserves and a competitive position in its local markets.

Brazil: France’s Vicat has confirmed that it is in talks with Ciplan. Local newspaper Valor Econômico revealed that Vicat was in the ‘final stages’ of buying the cement producer. Ciplan was founded in 1968 and it operates an integrated plant at Sobradinho in Bahia near to Brasilia.