PAI Partners to buy roofing business in €2.4bn deal

PAI Partners will buy the roofing business of cement group Lafarge, after beating off competition from 10 other investors.

PAI Partners, a European private equity firm, will buy the roofing business of Lafarge, a global cement group, for €2.4 billion ($3.2 billion).

Lafarge: will hold a 35 percent stake in the new entity

This amount includes €1.96 billion cash for the acquisition of the shares, versus an equity book value of €1.70 billion, and about €420 million of debt and pension liabilities taken on by PAI Partners.

Lafarge will hold a 35 percent stake in the new entity, which a spokeswoman said is worth around €215 million.

JP Morgan and Rothschild provided financial services while Freshfields gave legal advice.

Interested private equity investors included Bain Capital, The Carlyle Group, Doughty Hanson and LBO France.

This year private equity investors have shown a strong interest in the sector.  In April, ABN AMRO Capital France and Astorg Partners, a Paris-based mid-market firm, backed a €210 million management buyout of French roofing material company OFIC Group.