Argentina: Holcim Argentina has paid US$28.5m to acquire Tensolite, a producer and supplier of precast and prestressed concrete products such as concrete blocks, fences, tiles and paving stones. This move aims to diversify its domestic product portfolio in response to the ‘significant’ decline in local cement dispatches.
The acquisition is valued at US$28.5m, according to The National Securities Commission has reported that Holcim will pay US$19m upon closure of the transaction and another US$6.65m 12 months thereafter. The remaining US$2.85m will be due in five equal annual instalments.
Christian Dedeu, CEO of Holcim Argentina, said “In March, we recorded a 40% year-on-year drop in dispatches, according to the Portland Cement Manufacturers Association. The decision to expand our product range is key to mitigating the sharp drop in sales.”
The deal includes integrating two precast and prestressed concrete plants located in Los Pocitos (Tucuman) and Río Segundo (Córdoba), and adding over 150 employees to Holcim Argentina's workforce. The acquired plants have a total production capacity of 12m concrete blocks per year and 14Mm/yr of concrete beams. Holcim aims for 30% of its revenue to come from non-cement construction services by 2025.
