14 September 2015

Offer to purchase cement and concrete business units of SACCI SpA

Today Buzzi Unicem has submitted to SACCI SpA (SACCI) a binding offer to acquire its cement and ready-mix concrete business units, under the composition plan of SACCI itself.

SACCI is one of the major players of the cement sector in Italy, operating in the Central and Northern parts of the country, with a domestic market share estimated at about 6% and an adequate vertical integration in the ready-mix concrete industry.

The offer provides for the purchase of 5 cement plants (Cagnano Amiterno, Castelraimondo, Tavernola Bergamasca, Greve in Chianti and Livorno), 3 terminals, which are currently idle (Manfredonia, Ravenna and Vasto) and 27 ready-mix concrete plants, mainly located in the Central regions of the country.

The offer will be valid and binding until 31 March 2016, provided that SACCI includes it, by 21 September 2015, as an integral part in its application for composition to the Court of Rome. If the offer is accepted by SACCI and the composition plan is endorsed, the execution of the contract will be nevertheless subject to the approval by the Italian Antitrust Authority.

The offer provides for the payment by Buzzi Unicem of a provisional price amounting to €74 million, which will be financed with available liquidity and/or existing credit facilities. This price is subject to adjustments based on the payables and receivables of the business units at the closing date. A further variable outlay is expected to be added on top of the original commitment, according to specific future events including, most importantly, the Ebitda achieved in Italy over the next four years. In any case this variable component of the price cannot be less than €25 million.

With this second offer addressed to SACCI, Buzzi Unicem reaffirms its intention to play an active role in the consolidation process of the sector in Italy, to achieve production and commercial synergies through economies of scale and industrial rationalization and thus to improve its competitive position and profitability prospects, looking with optimism to a gradual recovery of construction investments in the home country.

Company contacts:
Investor Relations Assistant
Ileana Colla
Tel. +39 0142 416 404
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