Sources: Eagle Materials, Dallas; CP staff
Eagle Materials has sold its Mathews Readymix and Western Aggregates operations in northern California to Sacramento-based producer and contractor Teichert Inc. The Mathews assets include three batch plant locations and 26 trucks; Western Aggregates’ vested-rights-to-mine cover 3,900 acres and span reserves of 900 million-plus tons.
The $93.5 million deal anticipates Eagle Materials’ split into two public companies—a cement-centric namesake and wallboard-centered American Gypsum—originally scheduled for the second half of 2020, but subject to a revised timetable based on recent investor guidance.
“This transaction represents the sale of non-core assets on the heavy-side of our company [as] they do not provide essential support to our primary cement plant network,” says Eagle Materials CEO Michael Haack. “We are especially keen on having the most strategically coherent set of heavy-side assets established in advance of our previously announced spin-off. These divestitures, along with the integration of the Kosmos cement plant acquisition, create a focused heavy materials business with a broad capability to serve U.S. heartland cement markets.”