3 big hitters team up for Lafarge

In late November, CVC Capital Partners announced that, together with Advent International and The Carlyle Group, it was to acquire a majority of Lafarge’s Speciality Building Products division (LMS) for 890 million. The vendor, Lafarge, holds one third of the newco, which came into being in January. The balance is split equally between the three private equity houses.

The acquired LMS business activities, which are headquartered in France and employ around 4,500 people at 50 facilities worldwide, generated sales of some 930 million in 1999. The newco comprises the aluminates, mortars, admixtures, refractories and paints operations of the speciality building products division. Lafarge sold LMS’s road-marking business to Burelle prior to the LMS buyout, and the Lime business, operated as a joint venture with Carmeuse of Belgium, also remains with Lafarge.

All three private equity firms behind the LMS deal are leading practitioners in the industrial build-up arena and are planning add-on acquisitions for LMS within a structure and operating method that is compatible with Lafarge’s corporate culture’. The existing management team will continue to head LMS.

CVC ranked as the largest single private equity investor in France in 1999, with disbursements totalling Ff1.3 billion. Its French deals prior to LMS include Almar Group, BSN, Condat and Jallatte. Advent International’s previous deals in France include MC International, Elior and BCS, while Carlyle has invested in Genoyer, the Figaro Group and Otor.