New Delhi: Nirma Group today said it will acquire Emami Cement Ltd (ECL) for a total enterprise value of Rs 5,500 crore.
ECL has one integrated cement plant in Risdah, Chhattisgarh. It also has grinding units in West Bengal, Bihar and Odisha with a combined installed capacity of 8.3 million tonnes per annum. It also has mining leases in Rajasthan, Chhattisgarh and Andhra Pradesh.
Nirma Group is acquiring the cement company through its subsidiary Nuvoco Vistas Corporation Ltd, It said in a statement.
This acquisition will result in Nuvoco’s total cement capacity in the country to go up to 23.5 million tonnes (that includes the ongoing capacity expansion project in its Jojobera plant) and about 60 ready-mix plants, Nirma said in a statement.
“This transaction is an important step in our Group’s stated objective of becoming debt-free and with this transaction we will substantially achieve this objective. We are very proud of Emami Cement’s achievements in a short span of time and strongly believe that in Nuvoco, we have found the right acquirer who will be able to develop the business further in the interest of all the stakeholders,” said Manish Goenka, Director, Emami Group.
The combined operations of Nuvoco after the acquisition will include three plants in Chhattisgarh, two each in West Bengal and Rajasthan, and one each in Jharkhand, Bihar and Odisha and Haryana.
“This acquisition is a momentous and transformational step in Nuvoco’s journey to becoming a major building materials company in India delivering superior performance. Emami Cement will enable us to take our Cement business to the next level and continue to serve our customers with innovative and high-quality products that they trust,” said Hiren Patel, Chairman – Nuvoco.
The acquisition is subject to all the regulatory and other customary approvals including those from the Competition Commission of India. The entire acquisition is likely to be completed in about three-to-four months.
Shardul Amarchand Mangaldas acted as the legal advisor and Deloitte Touche Tohamatsu India acted as the financial diligence advisor for Emami Group. For Nuvoco Vistas, Khaitan and Co acted as the legal advisor.