Cemex announced that its U.S. affiliate, Kosmos Cement Company, a partnership with a subsidiary of Buzzi Unicem S.p.A. in which Cemex holds a 75 % interest, has signed a definitive agreement for the sale of certain assets to Eagle Materials Inc. for approximately US$ 665 million. The proceeds to Cemex from this transaction will be approximately US$ 499 million.
The assets being divested consist of Kosmos’ cement plant in Louisville, Kentucky, as well as related assets which include seven distribution terminals and raw material reserves.
EBITDA for the last 12 months as of September 2019 for the divested assets is estimated to be US$ 55 million.
“This is another key milestone in achieving our ‘A Stronger Cemex’ objectives. Now, closed or announced asset sales are in excess of US$ 1.3 billion under this program. We are pleased with the continued favorable asset-divestment dynamics in our industry,” said Fernando A. Gonzalez, CEO of Cemex.
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. It is currently expected to finalize this divestiture during the first quarter of 2020 or soon thereafter.