Cemex announced that one of its subsidiaries in the US has signed a definitive agreement for the sale of its Pacific Northwest Materials Business to Cadman Materials Inc, a LehighHanson company and US subsidiary of HeidelbergCement Group, for approximately US$150m.

The proceeds obtained from this transaction will be used mainly for debt reduction and for general corporate purposes.

The closing of this transaction is subject to the satisfaction of certain conditions, including approval from regulators. Cemex said it currently expect to finalise this divestiture "during the second quarter of 2017 or soon thereafter."

For HeidelbergCement, the acquisition strengthen its vertical integration in the states of Washington and Oregon. Dr Bernd Scheifele, chairman of the Managing Board of HeidelbergCement, comments: “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.”

Cemex’s Pacific Northwest Materials Business includes seven aggregate quarries, five ready-mix concrete plants and two asphalt operations employing about 350 employees. LehighHanson will fully integrate all the operations into its current network thereby broadening its position in the Pacific Northwest area,  HeidelbergCement noted in a statement.