Ready Mix USA sell non-strategic assets
CEMEX have announced that their 49.9% owned Ready Mix USA LLC joint venture has completed the sale of 12 active quarries and certain other assets to SPO Partners & Co., a San Francisco-based investment partnership, for US$420 million.
The 12 active sites, which comprise two granite quarries in Georgia, nine limestone quarries in Tennessee and one limestone quarry in Virginia, were all operated by Ready Mix USA and were deemed to be ‘non strategic’ by both companies.
The proceeds from the sale will be partly used to reduce debt held by Ready Mix USA and to effect a cash distribution of approximately US$100 million to both joint-venture partners.
CEMEX, who do not consolidate the results of Ready Mix USA, say they plan to use their share of the cash proceeds from the divestment to further reduce outstanding debt and enhance their liquidity position.
This asset divestment marks the latest move in CEMEX’s efforts to regain financial flexibility. Other measures taken include the refinancing of US$15 billion of CEMEX’s outstanding debt, the issuance of close to US$2.3 billion in notes, the raising of US$2.2 billion in equity and convertible securities, and the sale of CEMEX’s Australian operations to Holcim for U.S.$1.7 billion.
The 12 active sites, which comprise two granite quarries in Georgia, nine limestone quarries in Tennessee and one limestone quarry in Virginia, were all operated by Ready Mix USA and were deemed to be ‘non strategic’ by both companies.
The proceeds from the sale will be partly used to reduce debt held by Ready Mix USA and to effect a cash distribution of approximately US$100 million to both joint-venture partners.
CEMEX, who do not consolidate the results of Ready Mix USA, say they plan to use their share of the cash proceeds from the divestment to further reduce outstanding debt and enhance their liquidity position.
This asset divestment marks the latest move in CEMEX’s efforts to regain financial flexibility. Other measures taken include the refinancing of US$15 billion of CEMEX’s outstanding debt, the issuance of close to US$2.3 billion in notes, the raising of US$2.2 billion in equity and convertible securities, and the sale of CEMEX’s Australian operations to Holcim for U.S.$1.7 billion.
