Acquisition of Ukraine’s largest cement producer

Ukraine’s largest and most technologically advanced cement manufacturer is offered for sale for US$ 530 mln, implying 4.5x EV/EBITDA’25

With an annual capacity of 4.2 million tones of cement and cement-based products, the Group is CEE’s largest independent and Ukraine’s leading cement manufacturer, with a 44% share in Ukraine’s total production in 2023.

Due to a capacity upgrade program worth c. US$ 300 mln implemented in 2008–2019, the Group installed three state-of-the-art cement production lines from FLSmidth (Denmark), which led to a 2.1x reduction in energy consumption per ton of cement. In 2020, the Group was recognized as one of the top 20 most technologically advanced cement producers globally by the World Bank.

An abundant raw stock base underpins the Group’s technological edge. It is self-sufficient with limestone (cement’s major raw input) due to an in-house quarry with proven reserves of 65 million tonnes. The quarry is linked to the cement-producing facility by a 30 km long own railway, with deliveries performed by an in-house fleet of 18 locomotives and 1,900 freight railcars.

The Group exports c. 20% of its output and caters primarily to the Western Ukraine region, which proved more resilient to warfare-driven construction activity slowdown than other regions. In 2024, cement consumption in Ukraine remained 29% below the record high pre-war level in 2021, while Western Ukraine enjoyed a moderate decline of 7%. The region’s outperformance is likely to persist driven industrial and residential capital flight from war-torn regions.