Summit to Buy Lafarge Cement Operations

Summit Materials LLC of Denver, CO has signed a definitive agreement with Lafarge North America to acquire its cement plant in Davenport, IA and seven cement distribution for US$450 million in cash plus Summit’s Bettendorf, IA cement terminal. The transaction is expected to close in July 2015, pending final regulatory approval and the closing of the Holcim-Lafarge merger.

The Davenport assets will be integrated into Summit’s Continental Cement Co business based in Chesterfield, MO. The combined business will have 2.45 million tons of cement capacity across two plants in Hannibal, MO and Davenport, and eight cement distribution terminals along the Mississippi River from Minneapolis, MN to New Orleans, LA.

Tom Hill, Summit’s CEO, said, “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. The combination of 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 the Davenport plant and terminal employees to Summit, and to servicing new and existing customers with high quality product from our expanded cement operations.”

Holcim-Lafarge have also agreed to sell three Holcim terminals in Michigan and Illinois, Holcim’s 600 kilotonne/year Skyway slag grinding station in Illinois, and Holcim’s 700 kilotonne/year slag grinding station in Camden, NJ, along with a terminal in Everett, MA.

Essroc Italcementi Group of Nazareth, PA has signed an agreement with Holcim to purchase the Camden grinding facility and the terminal in Everett. Essroc currently produces slag cement at its Picton, ON and San Juan, PR cement plants and at its slag grinding facility in Middlebranch, OH. With the addition of Camden, Essroc has a combined annual production capacity in excess of one million tonnes. The proposed Holcim-Lafarge divestments have been negotiated with the U.S. Federal Trade Commission, and remain subject to review and approval by the Commission. The European Commission has cleared the proposed acquisition of several Holcim and Lafarge assets by CRH plc of Ireland. The assets consist of production facilities of grey and white cement, aggregates, ready-mix, asphalt and other construction materials in France, Germany, UK, Hungary, Slovakia, Romania. Cemex SAB de CV of Mexico reports that its operations in the U.S. generated net sales of US$868 million in the first quarter of 2015, up 10% from the same period of 2014. Operating EBITDA increased to US$64 million from US$28 million.

Volume 29 issue 9

Leave a Reply