BBVA advises FCC Group once again, this time in a reference deal in the cement sectorMarch 4, 2013
BBVA Corporate Finance has advised Cementos Portland Valderrivas (FCC Group) in two transactions with listed international building materials manufacturer CRH: the asset swap of Cementos Lemona for the stake of Corporacion Uniland it did not control, and the sale of British subsidiary Southern Cement.
The deal allows Cementos Portland to control the 99.99% of Corporacion Uniland thanks to the 26.4% stake acquired from CRH in exchange for the 98.8% of Cementos Lemona. The main benefit of controlling Uniland is its strong position in Eastern USA and Tunisia, two markets with a significant growth potential. Through the asset swap, CRH has acquired the 98.8% stake that Portland held in Lemona, a cement, concrete, mortar and aggregates group located in Northern Spain. The transaction generates an accounting surplus, without effect on Cementos Portland's treasury, of approximately 100 million euro.
The operation also includes the disposal of Southern Cement, an importer and distributor of cement products in the UK, operating the Port of Ipswich's cement terminal, to CRH for a 22.5 million euro cash consideration; and a supply contract to deliver cement to CRH in the USA through Uniland's subsidiary Giant Cement Holdings.
BBVA Corporate & Investment Banking's Corporate Finance unit has been chosen by Cementos Portland, the largest Spanish cement producer and one of Europe's leading manufacturers, to offer exclusive financial advisory in the operation. The Restructurings team, who worked in parallel to lead the Bank Syndicate approval process of the operation, allowed to deliver significant value for the client, who succeeds in increasing its international position in high-potential markets such as Tunisia and the USA, where it has ensured a preferred supplier relationship with CRH , and decreasing its exposure to the Spanish market.
The deal is a landmark transaction in the cement sector, redefining Portland's strategy. It reinforces BBVA Corporate Finance's leadership in M&A transaction advisory in Spain and consolidates BBVA's position as a reference advisor to FCC group, as this is the fifth transaction advised since 2010, and to other firms within the construction and infrastructure sector, since BBVA has also advised other top industry players such as Abertis, Acciona, Cemex, Cintra, OHL or Ferrovial.
Since 2009, BBVA Corporate Finance has acted as financial advisor in over 60 M&A transactions for companies such as Cepsa, Enagas, Endesa, Galp, Iberdrola, Repsol, REN (Energy), Nutrexpa, Osborne, Pernod Ricard, Sogrape (Foods and Beverages), Mapfre (Insurance) or Grifols (Pharmaceuticals).