Cemex SAB de CV has completed the divestment of its Pacific Northwest Materials Business through one of its US subsidiaries to Cadman Materials Inc, part of HeidelbergCement-owned Lehigh Hanson Inc.
Pacific Northwest Materials Business includes seven aggregate quarries, five ready-mix concrete plants and three asphalt operations in Oregan adn Washington, USA. The company generated about US$110m revenues and about USS14m of EBITDA in 2016 with about 350 employees. The acquired aggregates reserves and resources amount to about 110Mt. Lehigh Hanson will fully integrate all the operations into its current network and targets annual synergies of about USS7.5m.
“The acquisition strengthens our vertically-integrated market position in the states of Washington and Oregon” explains Dr Bernd Scheifele, chairman of the Managing Board of HeidelbergCement. “This improves our ability to move our products to customers in these attractive growth markets. The acquisition is part of our strategy of disciplined growth and increasing shareholder returns and we are expecting significant synergies.”
The transaction of a value of US$150m will provide the Cemex with additional funds to reduce debt and spend on general corporate purposes, according to a Cemex statement. Bank of America Merrill Lynch and Citigroup Global Markets Ltd acted as financial advisors in this transaction.
