Enter multiple symbols separated by commas

Lafarge Sells Roofing Business for $3.16 billon

French cement giant Lafarge said Monday it will sell its roofing business to private equity firm PAI Partners for $3.16 billion.

The sale is expected to have a positive impact on Lafarge's 2007 earnings per share, Lafarge said, adding that it will maintain a 35 percent stake in the business.

The sale, subject to regulatory approval, is "the best solution for the group, its shareholders, for the industrial future and the development of the roofing activity," the company said.

The $3.16 billion (2.4 billion euros) price tag represents nine times the business' estimated 2006 earnings before interest, tax, depreciation and amortization. This includes $2.6 billion in cash for the purchase of shares and $554 million of debt and pension liabilities.

Lafarge had said in June that it was considering selling the business and there was little reaction to its share price in Paris with the stock down about 0.2%

Contact U.S. News


    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

U.S. Video

  • Bull trades for dog days

    John Stoltzfus, Oppenheimer chief market strategist, expects 10 percent upside by year-end in the S&P 500.

  • Best & worst stocks for August

    CNBC's Dominic Chu uses data from Kensho to find out the best and worst performers in the Dow during August historically.

  • When will oil turn?

    Baker Hughes announced an increase in the U.S. oil rig count. Steven Kopits, Princeton Energy Advisors, shares his bull case for oil.