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

    › Learn More

Don't Miss

U.S. Video

  • Jon Steinberg, Daily Mail North America CEO, and the "Squawk Alley" team discuss PayPal's full page ad in The New York Times that slams Apple's security record.

  • Discussing the possible launch delay of the iPhone in China, with Jon Steinberg, Daily Mail North America CEO, and the "Squawk Alley" team. Fortt explains how the delay could be positive.

  • John Engler, Business Roundtable president, discusses results of his Q3 CEO Economic Outlook Index that shows CEOs believe the U.S. economy will underperform in the next six months.