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CRH to buy Floridian cement plant

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World Cement,

CRH has confirmed in its latest trading update that it has agreed to purchase a Floridian cement plant from Votorantim Cimentos North America Inc. and Anderson Columbia Co. The deal brings CRH’s spending on US cement assets to US$4.25 billion this year.

The assets are thought to be those of Suwannee American Cement, a joint venture between Votorantim and Anderson Columbia, that operates a cement plant, 18 ready-mixed concrete plants, an aggregates quarry, two block plants, and nine gunite facilities.

The 1 million tpy cement plant in Branford, Florida, has manufactured cement for the Floridian and southern Georgian construction market since 2003. CRH will spend US$0.75 billion on the acquisition, which will make the company the largest building materials company in Florida.

The Suwannee deal comes on the back of CRH’s successful US$3.5 billion takeover bid of Ash Grove Cement, the largest independent cement production in the US. Ash Grove operates eight cement plants in the Northeast, Midwest and Texas, with estimated sales of 8.3 million tpy this year.

The Ash Grove acquisition is expected to close in 2018, while the Suwannee deal is expected to close in late 2017.

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