Lafarge to sell Missouri and Oklahoma plants

Lafarge has announced the sale of several cement plants, ready-mixed concrete businesses and aggregates facilities in Missouri and Oklahoma, US to Eagle Materials Inc for US$ 446 million.

The assets include cement plants in Kansas City (Missouri) and Tulsa (Oklahoma) with a total capacity of 1.6 million tonnes, along with six associated cement terminals. It is also selling its eight ready-mixed concrete plants and two quarries in Kansas City, along with a fly-ash business. As part of the deal, Eagle will supply certain other Lafarge operations with cement for four to five years and will buy fuels for the acquired operations from a Lafarge affiliate.

According to Eagle, the businesses had revenues of US$ 178 million for the 12 months to June 30, and it added that the acquisition would increase its US cement capacity by some +60%.

President & CEO of Eagle Materials, Steve Rowley said, "Our stated strategy has been to grow the cement and aggregates side of our business. Our first priority has been to acquire cement plants that connect but do not overlap with the market reach of our existing plants. These two high-quality Lafarge cement plants are a compelling fit with our objectives."

Lafarge said it remained committed to the US market, and that after the sale it would still have nine cement and grinding plants in the US, with a total capacity of 9 million tonnes, as well as aggregates and concrete businesses.

The deal is subject to regulatory approval, and is expected to close in November or December.