One of Cemex’s subsidiaries has signed an agreement for the sale of certain assets in the United Kingdom to Breedon Group, for a total consideration of approximately $235 million, which includes approximately $31 million of debt.
The active assets being divested consist of 49 ready-mixed 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-mixed concrete, aggregates, asphalt and paving solutions.
“This transaction further rebalances our portfolio into our core markets, enhances our profitability, and enables us to continue to focus on deleveraging. We believe the valuation of this transaction is in line with our other recent divestments considering the type and return of the assets sold,” said Fernando A. Gonzalez, CEO of Cemex. “With this transaction, our asset sales to date, announced or closed, have now reached close to the mid-range of our $1.5 to $2 billion asset-divestment target under our ‘A Stronger Cemex’ plan.”
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.