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[December 2006]
Lafarge Announces Plan to Sell Roofing Activity to PAI Partners
The Board of Directors of Lafarge, which met on 3 December 2006, considered that the offer of PAI partners for the Roofing activity is the best solution for the group, its shareholders, for the industrial future and the development of the Roofing activity and its employees.
The information and consultation process with the relevant employee representative bodies was scheduled to start immediately. This project will be submitted to the relevant authorities, notably anti-trust authorities.
Within the framework of this project, Lafarge has chosen to hold a 35% stake in the new entity, with a corresponding number of seats on the board, demonstrating its commitment to remain involved and to contribute to the development of this activity in order to benefit from its future success.
This project fully values the Roofing activity, at an enterprise value of €2.4 billion, which represents a multiple of 9 times forecasted 2006 EBITDA.
This amount includes €1.96 billion cash for the acquisition of the shares (versus an equity book value of €1.70 billion) and approximately €420 million of debt and pension liabilities borne by the acquirer. It would have a positive impact on 2007 EPS.
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ENDS