Cemex associate raised US$420m for the sale of quarries

Cemex associate raised US$420m for the sale of quarries
Published: 23 February 2010

The Ready Mix USA LLC joint venture between Ready Mix USA and Cemex, in which Cemex has a 49.9% interest, has sold 12 active quarries and certain other assets to SPO Partners & Co., a San Francisco-based investment vehicle, for US$420m. 

The proceeds will be used mainly to reduce the debt held by the joint venture, but there is also expected to be a payment of approximately US$100m each to Cemex and its joint venture partner, Ready Mix USA, taking close to 50% of the proceeds. 

The operations being sold are two granite quarries in Georgia and ten limestone quarries, nine in Tennessee and one in Virginia.  The joint venture’s interests in cement, ready-mixed concrete and sand and gravel are not affected by this deal.