LSR Snaps Up Urals Concrete Maker

ST. PETERSBURG -- LSR Group will buy a 87 percent stake in a reinforced concrete maker in the Urals city of Yekaterinburg for 57 million euros ($89.93 million), it said Monday.

LSR said the concrete maker, Betfor, was the largest prefabricated construction company in Yekaterinburg, where LSR last year bought around 60 hectares of land and is planning to build economy class residential neighborhoods.

"In addition, the new acquisition will materially expand the LSR's construction segment and provide for a significant improvement of EBITDA in the segment," chief executive Igor Levit said.

Yekaterinburg, with the population of 1.3 million, ranks fourth after Moscow, St. Petersburg and Kazan by its volume of construction.

LSR said it would buy Betfor from the Nova-Group, a Urals-based holding, and was conducting due diligence of a number of other Nova-Group assets with the prospect of acquiring them.