French cement manufacturing company Vicat Group has announced the signing of a binding agreement with Brazilian mineral aggregates manufacturer Cimento Planalto (Ciplan) shareholders.

This transaction has been structured through a reserved capital increase of 290 million euros ($333.6 million) corresponding to a majority stake of approximately 65 percent.

Proceeds will be used to settle a vast majority of Cimento Planalto's existing debt. This transaction will be debt funded and its closing is subject to the fulfilment of certain conditions precedent.

With this acquisition, Vicat pursues its targeted external growth and geographical diversification strategy, through the incursion into a new emerging market benefiting from strong growth perspectives.