Vulcan Materials has agreed the sale of all of its cement activities, as well as certain downstream assets, to Cementos Argos for US$720m in cash. The deal, which is still subject to formal approval, is expected to be completed later during the first quarter. Vulcan will continue to supply aggregates to the assets being sold for a period of 20 years.
The assets being deposed of consist of the Newberry, Florida, cement works and cement terminals and griding works at Tampa and at Port Manatee. A total of 69 batching plants, mainly in Florida, with some being in Georgia, are also part of the deal as are 13 concrete block and other sites. The calcium operations are being retained by Vulcan
The cement turnover, which reached US$84.6m as the volumes increased by 18.4 per cent to 0.85Mt. The totality of the activities being sold generated a turnover of US$153m during the first nine months of the year, resulting in US$1m loss. In connection with this sale, Vulcan is intending to redeem US$500m of debt.