Emami sells cement business to Nirma Group for Rs 5,500 crore

Emami Group said on Thursday it has entered into a binding agreement with Nuvoco Vistas Corporation, part of the Ahmedabad-based Nirma Group, for divestment of its 100 per cent equity stake in Emami Cement for an enterprise value of Rs 5,500 crore.

Emami Cement operates one integrated cement plant and three grinding units with a total cement grinding capacity of about 8.3 million tonnes per annum.

Emami Group Director Manish Goenka said the transaction is an important step in the group's stated objective of becoming debt-free.

"We are very proud of Emami Cement's achievements in a short span of time. 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," he said in a statement.

The transaction is subject to the customary approvals, including from the Competition Commission, and is expected to be consummated in next three to four 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.

Nuvoco Vistas is a leading manufacturer and retailer of building materials with a vision to build a safer, smarter and more sustainable world. It is among one of the major players in cement in east, central and north India with an installed capacity of 14 million tonnes per annum.

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