Summit Materials to acquire some of LafargeHolcim divested assets in the US

Lafarge and Holcim have announced further information about the assets they propose for disposal in the US in order to facilitate their merger. These divestments have been negotiated with the Federal Trade Commission. They are subject to the review and approval by the Commission, and will be completed upon the Commission’s acceptance and the closing of the LafargeHolcim merger.

The divestments include: three Holcim terminals in Michigan and Illinois; Holcim Skyway 600 kt slag grinding station in Illinois; Holcim Camden 700 kt slag grinding station in New Jersey and a terminal in Massachusetts; Lafarge’s Davenport cement plant in Iowa and seven terminals along the Mississippi River.

Summit Materials has entered into a definitive agreement to acquire the Davenport plant and seven associated cement distribution terminals for a cash consideration of US$450 million along with Summit’s Bettendorf cement terminal in Iowa. The 1.1 million t (1.2 million short ton) Davenport plant will be integrated into Summit’s Continental Cement Company in Chesterfield, MO. This will bring the group’s cement capacity to 2.45 million short tons. The group’s cement operations will comprise the cement plant in Davenport and another in Hannibal, MO, as well as eight distribution terminals along the Mississippi River from Minneapolis to New Orleans. Summit will fund the US$450 purchase price through a combination of debt and equity.

“The Davenport Assets are an excellent fit with our materials-based growth strategy and a continuation of Summit’s proven track record of value-added acquisitions,” said Tom Hill, Summit CEO. “The combination of the Davenport Assets and Continental Cement creates a strategically compelling and complementary multi-plant cement business in very attractive markets along the Mississippi. We are looking forward to welcoming the Davenport plant and terminal employees to Summit, and to servicing new and existing customers with high quality product from our expanded cement operations.”

Adapted from press release by Louise Fordham

Read the article online at: https://www.worldcement.com/the-americas/17042015/lafargeholcim-proposed-asset-divestments-in-us-706/