Holcim has announced a $1.5 billion acquisition of a majority stake in Cementos Pacasmayo, aimed at expanding its operations in Peru's growing construction materials market by 2026.

Information on the Target

Holcim, the Swiss multinational company, has announced its intent to acquire a majority stake in Cementos Pacasmayo, a leading construction materials producer in Peru. Cementos Pacasmayo has projected net sales of approximately US$ 630 million by 2025 and an EBITDA margin of 28% anticipated for 2024. This strategic acquisition aims to consolidate Holcim's presence in the Peruvian market, which it entered last year, thereby accelerating growth across Latin America.

The transaction is valued at approximately US$ 1.5 billion, calculated based on a full enterprise value, which corresponds to a market consensus EBITDA multiple of 8.8 for 2025. This figure drops to 7.1 when factoring in expected annualized synergies of around US$ 40 million by the third year. The acquisition is expected to enhance earnings per share and free cash flow from the first year while improving the return on invested capital by the third year.

Industry Overview in Peru

Peru's construction materials industry is one of the fastest-growing sectors within the South American economy, driven by significant public infrastructure projects and a robust demand for resident