Brazil's Votorantim Cimentos files for a $5.4 billion IPO, would be largest US deal in 2013

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Votorantim Cimentos SA, which is Brazil's largest cement producer, filed on Wednesday with the SEC to raise up to $5.4 billion in an initial public offering, which would make it the largest deal thus far in 2013. Only Zoetis' ( ZTS ) $2.2 billion deal has broken the $1 billion plateau so far, though the ING US (VOYA; to be renamed Voya Financial) set terms yesterday for a deal that would raise $1.4 billion and industrial distributor HD Supply (HDS.RC) filed last Friday for an IPO that could raise at least $1.0 billion.

Founded in 1933, Votorantim Cimentos SA is the 8th largest cement producer globally based on production capacity, with operations in the Americas, Europe, Africa and Asia.  The São Paulo, Brazil-based company booked $4.6 billion in sales in 2012, an increase of 9% over 2011. Adjusted EBITDA increased 11% to $1.5 billion over the same period.  The company is owned by the Ermirio de Moraes family, which helped build one of the largest industrial conglomerates in Latin America in the Votorantim Group. The Votorantim Group has operations in metals, power generation, chemicals, pulp and paper, and orange juice with consolidated net revenue of $12.1 billion.

Votorantim Cimentos SA plans to dual list on the NYSE and in Brazil. The company has not yet announced a ticker. Morgan Stanley, J.P. Morgan, Itau BBA, Credit Suisse and BTG Pactual were listed as the joint bookrunners on the deal. No pricing terms were disclosed.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



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