Eagle Materials To Buy Cemex's Fairborn Cement Plant In U.S. For $400 Mln

(RTTNews) - Eagle Materials Inc. (EXP) announced Monday that the Company has entered into a definitive agreement to buy CEMEX S.A.B. de C.V.'s (CX) Fairborn, Ohio cement plant, as well as related assets. The purchase price is $400 million, subject to customary post-closing adjustments.

The related assets included a distribution terminal in Columbus, Ohio and a cement bagging operation. The cement plant has the capacity to grind nearly one million tons of clinker annually.

Eagle anticipates certain tax benefits arising from the transaction, the net present value of which is expected to be approximately $50 million. The transaction is expected to close in the fourth quarter of calendar 2016, or shortly thereafter, following the receipt of required regulatory approvals.

Calendar 2016 revenue and EBITDA for the acquired assets is estimated to be $79 million and $33 million, respectively. The acquisition will increase Eagle's US cement capacity by roughly 20% and is expected to be accretive to earnings immediately post-closing.

Eagle intends to finance the acquisition through a combination of cash on hand and borrowings under its existing bank credit facility.