After 21 years, Loma Negra returns to Argentine hands

In this way, Loma Negra, founded in 1926 by Alfredo Fortabat, whose widow Amalita led her to lead the business in the country and was sold to the Camargo Correa group in 2005, returns after 21 years to Argentine hands. Mindlin was appointed president of InterCement.

The process began after a restructuring of InterCement’s debt that was approached US$ 1.5 billion. That holding company belongs to the Camargo Correa family. At the same time, Loma Negra was able to maintain a financial and economic situation in the country that was not affected by the misfortunes of the holding company to which it belongs.

The Redwood Capital Management fund and the Chilean Moneda–Patria Investments joined the investment vehicle led by Mindlin. Since this afternoon, as was communicated to the CNV, it became in the majority shareholder of InterCement and Loma Negra.

“The change of shareholders is a consequence of the debt restructuring plan approved by the São Paulo court, which allowed the financial situation of InterCement to be stabilized, a holding company that also owns the majority stake in Loma Negra,” it was stated in a statement.

Mindlin already has experience in negotiations with Brazilians, In 2016 and with almost US$ 900 million, it took over the assets of Petrobras in Argentina. It was the kickoff for the transformation of its controlled Pampa Energía into one of the three main natural gas producing companies. It is a key player through TGS in gas transportation, in addition to leading in the construction of gas pipelines such as the Perito Moreno. Plan a nitrogen fertilizer plant.

Mindlin stated: “After many years of financial stress, today InterCement has a sustainable debt structure that allows it to focus on growth. The challenge is to strengthen the operation, sustain employment and consolidate a leading company in the region, with a long-term vision.”

And he added: “Similar processes have already occurred in Argentina, such as the case of Petrobras Argentina. InterCement and Loma Negra open today a comparable opportunity to incorporate Argentine capital in one of the most representative companies of the national industry.”

Regarding InterCement’s debtwas restructured with a 6.5% coupon, “leaving InterCement with a sustainable profile and no maturities in the next five years. In addition, the new shareholders made a contribution of fresh capital for 110 million dollars “which allows us to reinforce working capital and ensure an orderly transition,” it was noted.

The story of Loma Negra begins when Alfredo Fortabat discovers the limestone in the Loma Negra locality in Olavarría. The company expanded into different factories such as those located in Barker, near Tandil, in San Juan, Zapala (Neuquén) and Catamarca.

Then he bought other cement companies such as Cementos San Martín in Paraná, he has the Ferrosur Roca railway which connects all its plants and a recycler, Recycomb, which converts waste into alternative fuel used by its factories. Its assets also include a state-of-the-art logistics center in Cañuelas, Buenos Aires.

But the big leap was in 1998 when it created Lomax, the trucks that directly transport concrete to construction sites and that revolutionized construction methods. In parallel, it created a research and development center that is unique in Latin America and serves to define the type and quantities of cement according to each construction project. Since 2017 Loma Negra listed on Wall Street.

The company invested US$320 million in 2021 to expand the L’Amali plant in Olavarría and increase its production capacity by 40%. The firm employs to 2,906 people, 1829 in Loma Negra and another 1,077 in Ferrosur. It has nine plants of cement, an installed capacity of 10.2 million tons and a market share of 45%, which consolidates its leadership position in the Argentine market.

In turn, InterCement It is the third largest cement producer in Brazil. It has 14 industrial units, of which 10 are in operation, an installed capacity of 16.3 million tons and a market share of 13%, with sales of 8.5 million tons in the last year. Its operations are distributed in ten states, with distribution coverage in all regions of Brazil.

The company has a history of more than five decades: it began its activities in 1974, in the interior of the state of San Pablo, and since then it has consolidated a relevant presence in the local market. Through the Cauê, Goiás and Zebu brands, it serves clients in different segments, from small businesses to large infrastructure projects.