MONTERREY, Mexico -- CEMEX announced last Friday that it will acquire Ready Mix USA's interests in the two joint ventures between CEMEX and Ready Mix USA which have cement, aggregates, ready mix and block assets located in Southeastern USA.
The purchase price will be determined jointly by CEMEX and Ready Mix USA based on a pre-determined methodology. CEMEX currently estimates the purchase price for its partner's interests will be around US$360 million. At closing, CEMEX will also consolidate approximately US$17 million in net debt held by one of the joint ventures. Closing is expected to take place in September 2011.
The two joint ventures, which were created in 2005, are comprised of the following assets:
The joint venture operated by CEMEX owns the Demopolis cement plant in Alabama with an annual installed capacity of 0.9 million tons, the Clinchfield cement plant in Georgia with an annual installed capacity of 0.8 million tons, and 12 cement terminals.
The joint venture operated by Ready Mix USA owns 10 sand and gravel pits, 149 concrete plants and 20 block plants located throughout the states of Arkansas, Mississippi, Tennessee, Alabama, Georgia and the Florida Panhandle. Ready Mix USA will continue to manage this joint venture until the closing of the transaction.