HeidelbergCement to sell stake in US cement firm
CEMEX and Cementir Holdings to increase their participation in Lehigh White Cement Company
HeidelbergCement have announced that their US subsidiary Lehigh Cement Company LLC has signed an agreement to sell its 51% position in Lehigh White Cement Company to minority shareholders Aalborg Cement Company Inc., a US subsidiary of Cementir Holdings SpA, and a US subsidiary of CEMEX Inc.
As a result, Cementir will see their interest in Lehigh White Cement rise from 24.5% to 63.25% and CEMEX will see their holding increase from 24.5% to 36.75%.
Lehigh White Cement Company operate two plants in Waco, Texas, and York, Pennsylvania, with a combined annual production capacity of approximately 255,000 tonnes.
Dr Bernd Scheifele, chairman of the managing board of HeidelbergCement, said: ‘As a niche product with small volumes, the standalone production of white cement does not fit with HeidelbergCement’s strategic focus on efficiency.’
The total enterprise value of the transaction amounts to around US$140 million, with Cementir expected to pay a total consideration of approximately US106 million and CEMEX paying around US$34 million.
Closing of the transaction, which is subject to customary conditions, is expected to take place during the first quarter of 2018.
