Mexico's GCC on the hunt for acquisition targets

Mexican cement maker Grupo Cementos de Chihuahua (GCC) will be strongly focused on M&A opportunities in 2023 after some three years of not being able to seal a deal.

“We will continue strongly with our efforts on the M&A side and look for targets that we could incorporate into our business model,” CEO Enrique Escalante told a 2022 results conference call with analysts on Wednesday.

Escalante said the company is financially prepared for acquisitions and would seek additional funds if necessary. 

Asked about potential targets, CFO Maik Strecker said the company was looking for opportunities in the US market while being open to acquisitions in other countries as it can be difficult to find US firms that are willing to sell.

GCC’s capex strategy is mainly focused on two expansion projects, one at its Samalayuca plant in Chihuahua state and the other at its Odessa plant in Texas. Escalante said both projects are moving forward as planned. 

In the results report, GCC said its US sales increased 12% last year, while sales in Mexico rose 14%.

The company also said that it reactivated a share buyback program in 2022, representing an outlay of US$26.4mn.