CEMEX announces sale of Kentucky plant and related U.S. assets

CEMEX says that its U.S. affiliate, Kosmos Cement Company (Kosmos), a partnership with a subsidiary of BUZZI UNICEM in which CEMEX holds a 75% interest, has signed a definitive agreement for the sale of certain assets to Eagle Materials for around US$665mn. The proceeds to CEMEX from the deal will be approximately US$499 million, a company statement revealed. The assets being divested consist of Kosmos’ cement plant in Louisville, Kentucky, as well as related assets which include seven distribution termi
November 26, 2019 Read time: 2 mins
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CEMEX’s U.S. affiliate, Kosmos Cement Company, is selling its Kentucky plant and related American assets to Eagle Materials

643 CEMEX says that its U.S. affiliate, Kosmos Cement Company (Kosmos), a partnership with a subsidiary of 1451 BUZZI UNICEM in which CEMEX holds a 75% interest, has signed a definitive agreement for the sale of certain assets to 8108 Eagle Materials for around US$665mn. The proceeds to CEMEX from the deal will be approximately US$499 million, a company statement revealed.

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 (earnings before interest, taxes, depreciation and amortisation) for the divested assets in the 12 months to 30 September 2019 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 favourable asset-divestment dynamics in our industry,” said Fernando A. Gonzalez, CEO of CEMEX.

CEMEX says that the proceeds obtained from the Kosmos-Eagle Materials’ deal will be mainly used 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 expects to finalise the assets sale during Q1 2020 or soon thereafter.

BofA Securities, Inc. and Citigroup Global Markets Inc. are acting as the sale’s financial advisors.

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Cemex has announced its US affiliate Kosmos Cement has closed its divestment of its Kentucky cement plant and related assets to Eagle Materials for approximately $665 million.

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