Summit Materials Inc. has recently announced that it has finalised the acquisition process for a cement plant in Davenport, Iowa, and seven cement distribution terminals from Lafarge North America Inc. The total purchase price for the Lafarge assets was US$450 million in cash, plus the exchange of Summit Materials’ Bettendorf cement distribution terminal.
In accordance with the terms of the definitive asset purchase agreement, Summit Materials paid an initial price of US$370 million upon closing of the acquisition and the remaining sum of US$80 million is due by 31 December 2015.
With a cement plant that has a total capacity of 1.2 million t, the newly acquired Davenport cement operations compliment Summit’s existing cement plants in Hannibal, Missouri and cement distribution terminal in St. Louis, Missouri.
Following completion of the transaction, Summit Materials will combine its new Davenport assets with its facilities in Hannibal and St. Louis to operate as Continental Cement Company, L.L.C., a wholly-owned subsidiary of Summit Materials.
Summit Materials now owns 2.4 million t of cement production capacity across two cement plants. Moreover, the company owns eight cement distribution terminals along the Mississippi River system – from Minneapolis, Minnesota to New Orleans, Louisiana.
Adapted from press release by Joseph Green
Read the article online at: https://www.worldcement.com/the-americas/21072015/mississippi-river-continental-cement-company-summit-materials/