Vulcan Materials Florida asset sale complete

Vulcan Materials Co has concluded the sale of its cement and concrete businesses in the Florida area to Cementos Argos SA for US$720m in cash. Under a separate supply agreement, Vulcan will continue to provide aggregates to the divested concrete facilities, at market prices, for a period of 20 years.

"We are pleased to have successfully completed the transaction with Argos and to be working with Argos to supply aggregates to the facilities going forward," said Don James, chairman and CEO of Vulcan. "This transaction further enhances our strategic focus as the leading aggregates producer in the fastest-growing regions and urban markets of the United States.

The sold businesses, located in Florida and south Georgia, include the Newberry, Florida, cement plant, the Tampa and Port Manatee cement terminals and grinding facilities, 69 ready-mixed concrete sites as well as 13 concrete block and building material sites.

Vulcan Materials expects to register a pre-tax gain of around US$210m, or USD1.00 per diluted share, in 2014 from this sale, as well as related restructuring and other transaction related expenses, it added.