Company announces divestment of Kentucky cement plant and related assets to Eagle Materials
CEMEX have announced that their US affiliate Kosmos Cement Company, a partnership with a subsidiary of BUZZI UNICEM SpA, in which CEMEX hold a 75% interest, have signed a definitive agreement for the sale of certain assets to Eagle Materials Inc. for approximately US$665 million.
The assets being divested consist of Kosmos’ cement plant in Louisville, Kentucky, as well as related assets that include seven distribution terminals and raw material reserves.
EBITDA for the last 12 months as of September 2019 for the divested assets is estimated to be US$55 million.
CEMEX will receive proceeds of approximately US$499 million from the transaction. These will be used mainly for debt reduction and for general corporate purposes.
‘This is another key milestone in achieving our ‘A Stronger CEMEX’ objectives,’ said Fernando A. Gonzalez, chief executive officer of CEMEX. ‘Now, closed or announced asset sales are in excess of US$1.3 billion under this programme.
‘We are pleased with the continued favourable asset-divestment dynamics in our industry.’
The closing of the transaction, which is subject to regulatory approval and certain customary conditions, is expected to be finalized during the first quarter of 2020.