CEMEX to acquire Ready Mix USA assets
CEMEX have announced that, pursuant to the exercise of a put option by Ready Mix USA, they will acquire their partner’s interests in the two joint ventures between CEMEX and Ready Mix USA which have cement, aggregates, ready-mixed concrete and block assets located in the south-eastern US.
The purchase price will be determined jointly by CEMEX and Ready Mix USA based on a pre-determined methodology.
CEMEX currently estimate the purchase price for its partner’s interests will be around US$360 million. At closing, CEMEX will also consolidate approximately US$17 million in net debt held by one of the joint ventures.
The two joint ventures, which were created in 2005, are comprised of the following assets:
The joint venture operated by CEMEX owns the Demopolis cement plant in Alabama, which has an annual installed capacity of 0.9 million tons, the Clinchfield cement plant in Georgia, which has an annual installed capacity of 0.8 million ton, and 12 cement terminals.
The joint venture operated by Ready Mix USA owns 10 sand and gravel pits, 149 concrete plants and 20 block plants located throughout the states of Arkansas, Mississippi, Tennessee, Alabama, Georgia and the Florida Panhandle. Ready Mix USA will continue to manage this joint venture until the closing of the transaction.
Closing is expected to take place in September 2011.
