Lafarge sell assets in south-eastern US
Company divests cement and concrete assets to Cementos Argos for US$760 million
LAFARGE have announced the sale of their cement and concrete assets in the south-eastern US to Colombia-based conglomerate Cementos Argos for an enterprise value of US$760 million.
The cement assets sold include the company’s Harleyville cement plant in South Carolina, Roberta cement plant in Alabama, a cement grinding station in Atlanta, Georgia, and associated supporting cement terminals.
Lafarge’s 79 ready-mixed concrete units in this area of the US also form part of the sale.
In 2010 the total revenues of the divested businesses were approximately US$240 million.
Upon completion of the deal, which is subject to competition authority approval, Cementos Argos will become the second largest cement producer in the south-eastern US and the fourth largest ready-mix producer in the country.
Meanwhile, Lafarge’s North America operations will consist of 21 cement and grinding plants with a combined capacity of 19 million tons, as well as significant positions in the company’s other product lines.
Bruno Lafont, chairman and chief executive officer of Lafarge, said: ‘North America is an essential pillar for the Group, where we have the ambition to be the undisputed leader in the building materials industry.
‘This transaction creates value for our shareholders while maintaining a strong network of operations for future growth in North America.’