Summit Materials signed a definitive agreement with Lafarge North America to acquire Lafarge NA’s 1.2 million short-ton capacity cement plant in Davenport, Iowa, as well as seven cement distribution terminals for $450 million, reports Yahoo Finance.
According to Yahoo, the Davenport assets will be integrated into Summit’s Continental Cement Co. in Chesterfield, Mo. With the addition of the Lafarge assets, Summit will have 2.45 million short tons of cement capacity across two plants in Hannibal, Mo., and Davenport, along with eight other cement distribution terminals.
“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,” says Summit CEO Tom Hill. “The combination of the Davenport Assets and Continental Cement creates a strategically compelling and complementary multi-plant cement business in very attractive markets along the Mississippi.”
The transaction is expected to close July 2015, and the purchase price is expected to be funding by a combination of debt and equity, says Yahoo.
