Its US affiliate, Kosmos Cement Company – a partnership with a subsidiary of Buzzi Unicem in which Cemex holds a 75% interest - has signed a definitive agreement for the sale of a package of assets to Eagle Materials for approximately US$665m.
The assets being divested consist of Kosmos’ cement plant in Louisville, Kentucky, as well as seven distribution terminals and raw material reserves.
“This is another key milestone in achieving our ‘A Stronger Cemex’ objectives,” said Cemex CEO Fernando Gonzalez. “Now, closed or announced asset sales are in excess of US$1.3 billion under this programme. We are pleased with the continued favourable asset-divestment dynamics in our industry.”
The proceeds from this transaction will be used mainly for debt reduction and for general corporate purposes.
Closing of the deal is subject to the satisfaction of certain conditions, including approval from regulators. Cemex expects to finalise this divestiture during the first quarter of 2020 or soon thereafter.