Lafarge to sell European and South American gypsum assets to Etex for $1.41 bln

Lafarge, the world's largest cement maker today said that has entered into exclusive negotiations Belgium's Etex Group for the sale of its European and South American gypsum operations, for €1 billion ($1.41 billion).

Under this proposed agreement, Lafarge would receive approximately €850 million and an additional 20 per cent interest in the new partnership, which would combine the European and South American Gypsum activities of both cement makers.

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, Lafarge's European and South American Gypsum operations generated sales of €895 million and EBITDA of €115 million.

Bruno Lafont, chairman and CEO of Lafarge, said, "This project unlocks immediate value for the Group while allowing Lafarge to participate in the new entity's future success. We are very pleased of the future prospects of this reinforced partnership with Etex Group, a strong industrial company with expertise in building materials and systems."

Paris-based Lafarge, which posted sales of €16.2 billion in 2010, is gloabl producer of building materials including cement, aggregates and concrete, and gypsum.