Kolkata, February 6, 2020: Emami Group announces that it has entered into a binding agreement with Nuvoco Vistas Corporation Limited (“Nuvoco”, part of Nirma Group), for the divestment of its 100% equity stake in Emami Cement Limited (“Emami Cement”) for an enterprise value of INR 5500 crores.
Emami Cement operates one integrated cement plant and three grinding units with a total cement grinding capacity of around 8.3 million tonnes per annum. Emami Cement is one of the fastest growing Companies in the cement sector and has established its presence with a strong network in a very short span of time.
Manish Goenka, Director, Emami Group said: “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 we 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.”
Aditya Agarwal, Director, Emami Group said: “We are very proud of Emami Cement, which has achieved significant milestones in a very short span of time. It has successfully established a very strong brand equity in the market for its highest standard of operation and high-quality products, helping us to get a good value. We strongly believe that the Nuvoco and Nirma Group will continue from here and strengthen the business further.”
The transaction is subject to the customary approvals including from the Competition Commission and is expected to be consummated in next 3-4 months.
Shardul Amarchand Mangaldas acted as the legal advisor, Deloitte Touche Tohamatsu India LLP acted as the financial diligence advisor and Arpwood Capital acted as the financial advisor.