Cemex, S.A.B. de C.V. has announced that Cemex and Cemex Concretos, S.A. de C.V have entered into a definitive agreement to divest Cemex Concretos’ ready-mix concrete pumping assets in Mexico to Pumping Team S.L.L. for approximately US$80 million plus an additional US$29 million purchase price contingent on future performance targets.
The assets being divested consist mainly of Cemex Concretos’ 507 ready-mix concrete pumping units and other related assets.
Pumping Team, a Spanish-based company that specialises in providing pumping services, will become the supplier of ready-mix concrete pumping to Cemex and its customers in Mexico.
“This transition will be seamless for Cemex's customers, as they will continue dealing directly with the company to obtain pumping services for our ready-mix products,” said Juan Romero, President of Cemex Mexico. “This strategic divestment will allow us to increase our focus on our core ready-mix concrete business while transferring pumping services to a specialized company, thereby ensuring continued quality to our customers.”
The closing of this transaction is subject to the satisfaction of certain conditions, including approval from regulators in Mexico. We currently expect to finalize this sale during the first quarter of 2017. The proceeds obtained from this transaction will be used mainly for debt reduction and for general corporate purposes.
Seale & Associates are acting as financial advisors to Cemex in this transaction.