Cemex sells plant in Canary Islands to reduce debt frrom Rinker acquisition
11 Nov 2008
The world's third-largest cement maker Cemex SAB de CV has announced the sale of its Canary Islands operations to Spanish investment holding company Cimpor Inversiones SA that is a subsidiary of Cimpor Cimentos de Portugal SGPS SA, for approximately €162 million euros ($211 million dollars).
Cemex will also receive an additional separate payment for the working capital. Closing of the transaction is subject to the approval of Spanish regulatory authorities.
Cemex plans to use the proceeds from the sale to reduce its debt from its $16-billion acquisition of Australia's Rinker Ltd in 2007. Rinker had 80 per cent of its operations in the US, which is facing a slump and a baten down housing market and also a slowdown in its key European markets such as Spain.
The scope of the transaction includes Cemex's cement and ready-mix assets in Tenerife and 50 per cent of the shares in two joint-ventures, Cementos Especiales de las Islas, S.A. (CEISA) and Inprocoi, S.L. These operations together generated approximately €189 million euros ($260 million dollars) in revenues during 2007.
Cemex manages directly and through its joint-ventures in the Canary Islands 2 grinding mills and 19 other plants including ready-mix, mortar and precast facilities.
J.P. Morgan and RBS acted as financial advisors to Cemex in this transaction.
Cemex is a growing global building materials company that provides high-quality products and reliable service to customers and communities in more than 50 countries throughout the world. Cemex has a rich history of improving the well
