HeidelbergCement, through its subsidiaries Essroc Corp. and Lehigh Hanson Inc., entered into an agreement with Argos USA LLC, a subsidiary of Cementos Argos, to sell its Martinsburg, West Virginia, cement plant and eight related terminals.
The transaction purchase price is $660 million, the company reports. HeidelbergCement expects the transaction to close in the fourth quarter of this year.
The Federal Trade Commission (FTC) ordered the asset disposals to address competition concerns arising from the Italcementi acquisition. The agreement is subject to the approval of the FTC and other customary closing conditions, the company adds.
“With the disposal of the Martinsburg plant we have successfully finalized our disposal program in the context of the Italcementi acquisition,” says Bernd Scheifele, chairman of the managing board of HeidelbergCement. “Together, with the disposals of the non-core assets and the Belgium assets of Italcementi, we have exceeded our 1 billion euros target on disposal proceeds and, thereby, further improved the net financial position of HeidelbergCement.”
