Anglo sell Tarmac's US assets to Titan Cement

01 October, 2000

ANGLO American have sold Tarmac America, one of the leading suppliers of aggregates, cement, concrete products and ready-mixed concrete in the southern and eastern US, to Athens-based Titan Cement Co. for $636 million (œ440 million), subject to regulatory approval.

The sale is in line with Anglo's stated intention to dispose of Tarmac's US assets, a move which was announced when the company made their offer for Tarmac at the end of last year.

The agreed price of $636 million is said to exceed Anglo's initial expectations and reduces the cost of acquiring the ongoing businesses of Tarmac to $1.3 billion. This cost will be further reduced by the proceeds from the disposal of certain UK assets, due to be completed soon.

Titan Cement Co. produce and sell cement and building materials in Greece, the US, Egypt and south-east Europe and are also involved in quarrying, transportation, shipping and related services. The assets which they will be acquiring are:

a cement plant in Florida with an annual production capacity of 1 million tonnes
the remaining 40.9% of the Roanoke cement plant in Virginia, raising Titan's stake to 100%
two quarries in Florida, with sales of 8.5 million tons of aggregates in 1999
45 ready-mixed concrete plants in Florida and Virginia, with sales of 2.4 million m3 in 1999
25 production and distribution facilities of other building products such as blocks, pipes and pavers.

Titan, whose total production capacity is in excess of 10 million tonnes, have concurrently signed an agreement to sell all of Tarmac's aggregates assets outside Florida to Vulcan Materials Co. - the largest producers of construction aggregates in the US - for $227 million.