Holcim Buys Majority Stake in Peru’s Cementos Pacasmayo for $1.5B
Swiss building materials giant's largest Latin American acquisition deepens its footprint in a high-growth market, targeting significant infrastructure and housing demand.
Swiss building-materials giant Holcim has announced a definitive agreement to acquire a majority stake in Cementos Pacasmayo, one of Peru’s leading building materials companies, in a deal that values the Peruvian firm at an enterprise value of approximately $1.5 billion.
The transaction, which marks Holcim’s largest acquisition to date in Latin America, signals a significant strategic acceleration into the region, driven by strong growth prospects in Peru’s construction sector. The move is a core part of Holcim's "NextGen Growth 2030" strategy, which identifies Latin America as its most profitable market globally.
Holcim is acquiring the 50.01% stake from the controlling Hochschild family, a move that will give it a commanding presence in the Peruvian market. According to an official company announcement, the deal implies a multiple of 8.8 times Cementos Pacasmayo's projected 2025 consensus EBITDA. Holcim expects the acquisition to be accretive to its earnings per share (EPS) and free cash flow from the first year.
Strategic Push into a Booming Market
Holcim's aggressive expansion comes as Peru's construction industry is poised for significant growth. The market is projected to expand by 3.8% in real terms in 2025, underpinned by major public and private investments.
Key drivers include massive government-backed infrastructure projects, such as the $3.4 billion Peripheral Beltway in Lima and a proposed $6.5 billion Lima-Ica train line. This public spending is complemented by a surging residential market, which saw housing sales in Lima hit a record high in the second quarter of 2025, up 41% from the previous year.
Jan Jenisch, Chairman and CEO of Holcim, commented on the deal's strategic fit, noting that the acquisition will deliver significant synergies. Holcim anticipates realizing approximately $40 million in annual run-rate synergies within three years, bringing the acquisition multiple down to an attractive 7.1x.
A Peruvian Industrial Leader
Founded 67 years ago and listed on both the Lima and New York Stock Exchanges (NYSE: CPAC), Cementos Pacasmayo is a cornerstone of Peruvian industry. The company operates three cement plants with an annual capacity of nearly 5 million tons, alongside a network of 28 ready-mix concrete plants and over 300 'DINO' branded retail stores.
With a market capitalization of just under $600 million prior to the amplification of acquisition buzz, the $1.5 billion enterprise valuation represents a substantial premium, reflecting Pacasmayo's strategic importance and cash-generative operations. The company is projected to achieve net sales of $630 million and an EBITDA margin of 28% in 2025.
The acquisition will integrate Pacasmayo's extensive footprint with Holcim's existing Disensa retail network, creating a powerful distribution and production ecosystem across the country.
Pending customary conditions and regulatory clearance, the transaction is expected to close in the first half of 2026. This landmark deal not only reshapes the landscape for building materials in Peru but also underscores a renewed wave of foreign investment appetite for key Latin American industrial assets.