HeidelbergCement to sell US assets to Cementos Argos
Company selling Martinsburg cement plant and eight related terminals for US$660 million
HeidelbergCement, through their subsidiaries Essroc Corp. and Lehigh Hanson Inc., have entered into a definitive agreement with Argos USA LLC, a subsidiary of Cementos Argos, to sell their Martinsburg, West Virginia, cement plant and eight related terminals.
The disposal was required by Federal Trade Commission (FTC) Decision and Order to address competition concerns arising from the Italcementi acquisition. The agreement is subject to the approval of the FTC and other customary closing conditions.
The transaction purchase price is US$660 million on a cash and debt-free basis, and HeidelbergCement say they expect the deal to close in the fourth quarter of 2016.
Dr Bernd Scheifele, chairman of the managing board of HeidelbergCement, said: ‘With the disposal of the Martinsburg plant, we have successfully finalized our disposal programme in the context of the Italcementi acquisition.
‘Together with the disposals of the non-core assets and the Belgium assets of Italcementi, we have exceeded our €1 billion target on disposal proceeds and thereby further improved the net financial position of HeidelbergCement.’
