Cemex To Acquire Ready Mix Stake
- Published: Friday, 15 October 2010 10:20
Cemex set a September 2011 target to acquire the stake of partner Ready Mix USA in two joint venturesóone cement, the other concrete, block and aggregate. Estimated at $360 million, based on a predetermined valuation methodology, the transaction covers a host of assets the partners have amassed since 2005: Demopolis, Ala., and Clinchfield, Ga., cement mills, plus 12 distribution terminals; 10 sand and gravel pits supplying various company concrete operations; and 149 ready mixed and 20 block plants in Alabama, Georgia, the Florida panhandle, Arkansas, Mississippi and Tennessee. Cemex has operated the cement plants and terminals under one joint venture; the second, primarily concrete and aggregates suppliers, will continue to operate under Ready Mix USA through the closing.
Cemex formed the joint ventures shortly after acquiring U.S. giant RMC Industries and its London-based parent, RMC Group. Birmingham, Ala.-based Ready Mix USA, founded by heirs of University of Alabama football legend Bear Bryant, emerged from the late 1990s as a key player in ready mixed and block throughout Alabama and Georgia.
The concrete and aggregate joint venture saw namesake operations integrated with southeast properties of RMC and Rinker Materials Corp., which Cemex took over in mid-2007. An initial joint-venture agreement offered Cemex a buyout option after three years; terms changed as the company rolled additional properties to the concrete and aggregate joint venture following the Rinker deal. ?