Eagle Materials Inc. (NYSE: EXP), Dallas, TX, has agreed to acquire two cement plants from Lafarge North America, Reston, VA. The acquisition includes plants in Sugar Creek, MO, and Tulsa, OK, as well as related assets, which include six distribution terminals, two aggregates quarries, eight ready-mix concrete plants and a fly ash business.
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Eagle will also enter into a transition sales agreement to supply certain Lafarge operations with cement for four to five years, and an agreement with a Lafarge affiliate to supply low-cost alternative fuels to the acquired operations.
The purchase price is $446 million, subject to customary post-closing adjustments. Trailing 12-month revenues through June 30, 2012 for the cement plants and related assets were $178 million. The acquisition will increase Eagle’s U.S. cement capacity by roughly 60 percent.
\”Our stated strategy has been to grow the cement and aggregates side of our business. Our first priority has been to acquire cement plants that connect but do not overlap with the market reach of our existing plants,\” said Steven Rowley, president and CEO of Eagle Materials. \”These two high-quality Lafarge cement plants are a compelling fit with our objectives – and the transaction meets our stringent criteria for new investment.\”
Eagle Materials is a diversified manufacturer of basic building materials used in residential, industrial, commercial and infrastructure construction and in oil and gas production.