PPC CEO Ketso Gordhan
South African cement producer PPC has entered into an agreement to buy a controlling equity stake in blended cement producer Safika Cement Holdings for R350-million.
This followed an announcement by the JSE-listed company in January that it would pursue additional acquisition opportunities, after posting a strong 2013 financial year characterised by good growth in cement volumes in South Africa, Botswana and Zimbabwe.
Safika comprised five blending facilities and one milling operation producing over 20-million bags of blended 32.5N-class cement a year, under the brands IDM Best Build, Castle and the Spar Build-It house brand.
“We are excited to be able to add another complementary business to PPC. This is an important step in our ‘Keeping the Home Fires Burning’ strategy,” PPC CEO Ketso Gordhan said in a statement on Wednesday.
The proposed transaction remained subject to approval by the regulatory authorities, as well as the conclusion of the due diligence process.