Sources: Eagle Materials Inc., Dallas; CP staff
A definitive agreement with Cemex S.A.B. de C.V. will net Eagle Materials a Xenia, Ohio (Fairborn) cement plant, plus Columbus terminal, cement bagging operation and related assets. The $400 million deal is projected to close in the fourth quarter and could increase the suitor’s cement output by up to 20 percent.
With nearly 1 million tons’ annual grinding capacity, the Fairborn mill joins Eagle Materials’ Illinois Cement, Mountain Cement, Nevada Cement and Texas Lehigh Cement (joint venture w/Lehigh Cement Co.) heritage operations, plus rebranded Central Plains Cement and Skyway Cement (GGBF slag) businesses, acquired in 2012 and 2016, respectively, from Lafarge North America and Holcim (US) Inc.
“Our strategy has been to grow the cement side of our business. The Fairborn plant extends our U.S. cement system and connects but does not overlap with the market reach of our existing plants,” says Eagle Materials CEO Dave Powers. “This high-quality cement plant is a compelling fit with our strategic objectives and criteria for new investment. These assets will allow us to participate more fully in the U.S. construction industry and further positions the company in target heartland growth markets.”
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