CEMEX has announced that one of its subsidiaries has signed an agreement for the sale of certain assets in the United Kingdom to Breedon Group plc (Breedon), for a total consideration of approximately U.S.$235 million, which includes approximately U.S.$31 million of debt.

The active assets being divested consist of 49 ready-mix plants, 28 aggregate quarries, 4 depots, 1 cement terminal, 14 asphalt plants, and 4 concrete products operations. Part of CEMEX’s Paving Solutions business in the United Kingdom, together with some inactive sites, are also included in the sale to Breedon. After completion of the divestiture, CEMEX will still retain a substantial integrated business in the United Kingdom encompassing, among other things, cement production, ready-mix concrete, aggregates, asphalt, and paving solutions.

EBITDA for 2018 generated by the divested assets was approximately U.S.$21 million (U.S.$29 million adjusted for IFRS16).

“This transaction further rebalances our portfolio into our core markets, enhances our profitability and enables us to continue to focus on deleveraging. We believe the valuation of this transaction is in line with our other recent divestments considering the type and return of the assets sold,” said Fernando A. Gonzalez, CEO of CEMEX. “With this transaction, our asset sales to date, announced or closed, have now reached the lower end of our US$1.5-to-US$2.0-billion asset-divestment target under our ‘A Stronger CEMEX’ plan.”

The proceeds expected to be obtained from this divestment will be used mainly for debt reduction and for general corporate purposes.

Prior to completion of the divestiture, CEMEX will be running an information and consultation process with employees who are affected by the transaction. CEMEX currently expects to finalize this divestment during the second quarter of 2020.

HSBC acted as sole financial adviser to CEMEX on this transaction.