U.S. Concrete has sold its four ready-mixed concrete plants in Sacramento, Calif.
U.S. Concrete has sold its four ready-mixed concrete plants in Sacramento, Calif. The sales price was approximately $6 million, plus payment for certain inventory on hand at closing.
During 2008 and the first six months of 2009, these operations generated revenues of $22 million and $3.5 million on ready-mixed concrete volumes of 219,083 and 38,419, respectively. The sales proceeds were used to pay down debt under the company's revolving credit facility. As a result of the transaction, the company expects to report a loss on the sale. In accordance with United States generally accepted accounting principles, the company will be required to test the remaining goodwill, for the portion of the reporting unit that was retained, for impairment.
U.S. Concrete has 129 fixed and 12 portable ready-mixed concrete plants, seven precast concrete plants and seven aggregate facilities. During 2008 (including acquired volumes), these plant facilities produced approximately 6.3 million cubic yards of ready-mixed concrete and 3.5 million tons of aggregate.