US-based construction materials company Summit Materials, Inc has completed its previously announced acquisition of a 1.2Mst cement plant in Davenport, Iowa along with seven cement distribution terminals from Lafarge North America Inc. unit for a purchase price of US$450m in cash, plus an exchange of Summit’s Bettendorf, Iowa cement distribution terminal, the company said on Monday.

The newly-acquired cement operations are a complementary fit with Summit’s existing cement plant in Hannibal, Missouri and cement distribution terminal in St Louis, Missouri.

These combined business will operate as Continental Cement Co, L.L.C. an existing wholly-owned subsidiary of Summit.

Following completion of the transaction, Summit owns 2.4Mst of cement production capacity across the two cement plants plus eight cement distribution terminals along the Mississippi River system ranging from Minneapolis, Minnesota to New Orleans, Louisiana.

Tom Hill, President and CEO of Summit, stated, “We are thrilled to complete this acquisition which roughly doubles our cement capacity and firmly establishes our position as a top three cement producer on the Mississippi River."

The cash purchase price of the Davenport Assets was US$450m and in accordance with the terms of the definitive asset purchase agreement, Summit paid an initial purchase price of US$370m upon closing of the acquisition. The remaining purchase price of US$80m is due by 31 December2015.

As part of the financing for this acquisition, in July 2015, Summit completed an offering of US$350m aggregate principal amount of 6.125 per cent senior notes due 2023 and also entered into a new US$650m term loan facility, replacing Summit’s prior US$422m term loan.

The initial purchase price of the acquisition was partially funded with a portion of the proceeds from the senior notes, and the remainder was funded with availability under Summit’s new term loan facility.