TITAN Group's US $190 million acquisition of Turkey's Tra Traçim Cement Company further strengthens its strategic presence in the fast-growing market of Greater Istanbul. According to the agreement signed on December 11, TITAN will acquire all the shares of the modern integrated cement plant with an annual capacity of about 2.5 million tons. The transaction is expected to be completed in the first quarter of 2026, pending regulatory approval. The acquisition is not only an important milestone for TITAN in the Turkish market, but also provides a key platform for TITAN to expand its export markets in the United States and Eastern Europe. The strategic value of the Tra Traçim cement plant can be seen on several levels. First, stable cement demand in the Greater Istanbul region, in contrast to the more volatile situation in other Turkish markets, provides TITAN with a reliable revenue base. Secondly, the factory has convenient port access, which enables it to export to neighboring countries and the U.S. market. Particularly noteworthy is that as the EU increases the cost of carbon emissions since 2026, exports to regions without such regulations, such as the United States, will become an important profit growth point for TITAN. In addition, the plant's proximity to the Black Sea has created favorable conditions for the future supply of cement to the Ukrainian reconstruction market, Syria and Gaza.
From a financial perspective, this investment will significantly enhance TITAN's profitability. Upon completion of the acquisition, Tra Traçim Cement Plant is expected to contribute more than $140 million in sales and more than $50 million in EBITDA annually, and to increase earnings per share from 2026. Considering the additional benefits of subsequent operational synergies, the return on investment of the transaction is considerable. The $190 million consideration for the acquisition, relative to its financial contribution, demonstrates TITAN's robust strategy in capital operations.
This acquisition fits perfectly with TITAN Group's "FORWARD 2029" strategic plan. According to the plan announced at Investor Day in November, the group will allocate more than 3 billion euros of capital for investment in the next few years, of which 37% (about 1.1 billion euros) will be dedicated to acquisition projects. The incorporation of Tra Traçim Cement Plant is a concrete manifestation of the Group's goal of optimizing regional layout and accelerating inorganic growth. At the same time, TITAN is in talks with sellers to develop large-scale solar projects to support the Group's decarbonization goals, further highlighting its sustainable development philosophy.
TITAN's current strong financial position provides a solid foundation for this expansion. In the first nine months of the year, the group posted a record operating profit of 474 million euros, and net debt was slashed to 302 million euros from 622 million euros in December 2024. Not having to refinance its debt by the end of 2027, coupled with healthy leverage after a full-year investment of 185 million euros and a dividend of 3 euros per share, indicates that TITAN has ample financial flexibility to support its ambitious growth plans. TITAN is consolidating its position as a regional industry leader by continuing to expand its sustainable building materials footprint in Europe and the Eastern Mediterranean.
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