Hoffmann Green Cement seals US licensing agreement
PARIS, July 10, 2024
Hoffmann Green Cement Technologies, an industrial player committed to the decarbonation of the construction sector that designs and markets innovative clinker-free cements, has signed a 30-year licensing agreement with Hoffmann Green USA, owned by Olivier Ducimetière-Monod and his associate Francis Beauvallet, for the US market.
The deal was inked by Hoffmann Green with the US group after a conclusive series of tests and several months of discussions.
Olivier Ducimetière-Monod, based in the US since 1988, is a successful construction and property development entrepreneur. With more than 35 years' experience in the sector, Olivier Ducimetière-Monod has a strong network in the American political and economic ecosystem as well as precious expertise to support Hoffmann's development throughout the states.
Francis Beauvallet, CEO of Beauvallet Construction, a key player in the monument restoration and financial engineering sector in France, will also bring his complementary expertise to the deployment of the Hoffmann model in the United States.
The contract signed also includes the option, until 2025, of an extension of the licence to the entire United States in exchange for a total entry fee of €20 million ($21.5 million), it added.
This strategic licensing agreement comes just months after Hoffmann Green Cement had sealed a similar deal in Saudi Arabia.
TradeArabia had reported in September last year that the French group had signed a 22-year exclusive licensing agreement with Shurfah Group, a Saudi conglomerate that boasts more than SAR6 billion ($1.6 billion) in residential and real estate investments.
The deal will see the construction of several green cement units across the kingdom in the coming years.
Hoffmann Green Cement produces innovative extremely low-carbon cements – with a carbon footprint five times lower than traditional cement – that present, at equivalent dosage and with no alteration to the concrete manufacturing process, superior performances than traditional cement.
This exclusive 30-year licensing agreement with a firmly established partner in the US is aimed at benefitting from Hoffmann Green's 0% clinker technologies and replicate Hoffmann units on the vertical model of the H2 production unit.
In return for the industrial and technological transfer and exclusivity in the first American states, Hoffmann Green will receive a first entry fee of €2 million as well as fixed and variable annual royalties based on sales generated by the commercialisation of Hoffmann cements.
The contract also gives the partner the option of sub-licensing Hoffmann units in these states. This option represents an additional growth driver for Hoffmann, generating more royalties and extending the sale of premix to sub-licensees.
Negotiations with key sub-licensees are already in progress. This licensing agreement reaffirms the interest of international partners in Hoffmann Green's innovative solution and the viability of its international development model, it stated.
Julien Blanchard and David Hoffmann, co-founders of Hoffmann Green Cement Technologies, said: "The signing of this key licensing agreement in the US is the concrete result of the pre-agreement announced at the end of last year. We are delighted to join forces with two partners who share our vision of the construction sector and have both significant expertise and in-depth knowledge of the local ecosystem."
"After the licensing agreement signed in 2023 in Saudi Arabia, this step strengthens our international development strategy in two key states of the American construction sector, with the option of extending this agreement to the entire US territory by 2025," they added.-TradeArabia News Service
