Cemex has announced that one of its subsidiaries has signed an agreement for the sale of certain assets in the United Kingdom to the Breedon Group, for a total consideration of approximately US$ 235 million, which includes approximately US$ 31 million of debt.
The active assets being divested consist of 49 ready-mix plants, 28 aggregate quarries, four depots, one cement terminal, 14 asphalt plants, and four concrete products operations. Part of Cemex’s Paving Solutions business in the United Kingdom, together with some inactive sites, are also included in the sale to Breedon. After completion of the divestiture, Cemex will still retain a substantial integrated business in the United Kingdom encompassing, among other things, cement production, ready-mix concrete, aggregates, asphalt, and paving solutions.
EBITDA for 2018 generated by the divested assets was approximately US$ 21 million (US$ 29 million adjusted for IFRS 16).
The proceeds expected to be obtained from this divestment will be used mainly for debt reduction and for general corporate purposes.
Prior to completion of the divestiture, Cemex will be running an information and consultation process with employees who are affected by the transaction. Cemex currently expects to finalize this divestment during the second quarter of 2020.