CEMEX to divest Pacific Northwest Materials
18 April 2017 - 12:19
US aggregates, asphalt and ready-mixed concrete business to be sold to Cadman Materials for $150 million
HeidelbergCement have announced that their US subsidiary Cadman Materials Inc., a LehighHanson company, is to acquire CEMEX’s Pacific Northwest Materials Business in the US.
One of CEMEX’s US subsidiaries has signed a definitive agreement for the sale of the business, which consists of aggregate, asphalt and ready-mixed concrete operations in Oregon and Washington, to Cadman Materials, for approximately US$150 million.
Dr Bernd Scheifele, chairman of the managing board of HeidelbergCement, said the operations would be an ideal strategic fit in order to broaden the Group’s vertically integrated market position in the states of Washington and Oregon.
‘This is a bolt-on acquisition with low risks and we are expecting significant synergies. It is part of our strategy of disciplined growth and increasing shareholder returns,’ he commented.
CEMEX’s Pacific Northwest Materials Business includes seven aggregate quarries, five ready-mixed concrete plants and two asphalt operations employing about 350 employees.
LehighHanson plan to fully integrate all the operations into their current network, thereby broadening the company’s position in the Pacific Northwest area.
CEMEX say the proceeds obtained from the transaction will be used mainly for debt reduction and general corporate purposes.
The closing of the transaction, which is subject to final approval from the regulators, is expected to complete during the second quarter of 2017 or soon after.