MONTERREY, Mexico--(EON: Enhanced Online News)--CEMEX, S.A.B. de C.V. (“CEMEX”) (NYSE: CX) announced today that CEMEX and CEMEX Concretos, S.A. de C.V. (“CEMEX Concretos”) have entered into a definitive agreement to divest CEMEX Concretos’ ready-mix concrete pumping assets in Mexico to Pumping Team S.L.L. (“Pumping Team”) for approximately U.S.$80 million plus an additional U.S.$29 million purchase price contingent on future performance targets.
“This strategic divestment will allow us to increase our focus on our core ready-mix concrete business while transferring pumping services to a specialized company, thereby ensuring continued quality to our customers.”
The assets being divested consist mainly of CEMEX Concretos’ 507 ready-mix concrete pumping units and other related assets.
Pumping Team, a Spanish-based company that specializes in providing pumping services, will become the supplier of ready-mix concrete pumping to CEMEX and its customers in Mexico.
“This transition will be seamless for CEMEX's customers, as they will continue dealing directly with the company to obtain pumping services for our ready-mix products,” said Juan Romero, President of CEMEX Mexico. “This strategic divestment will allow us to increase our focus on our core ready-mix concrete business while transferring pumping services to a specialized company, thereby ensuring continued quality to our customers.”
The closing of this transaction is subject to the satisfaction of certain conditions, including approval from regulators in Mexico. We currently expect to finalize this sale during the first quarter of 2017.
The proceeds obtained from this transaction will be used mainly for debt reduction and for general corporate purposes.
Seale & Associates are acting as financial advisors to CEMEX in this transaction.
CEMEX is a global building materials company that provides high quality products and reliable service to customers and communities in more than 50 countries. Celebrating its 110th anniversary, CEMEX has a rich history of improving the well-being of those it serves through innovative building solutions, efficiency advancements, and efforts to promote a sustainable future.
For more information on CEMEX, please visit: www.cemex.com
For more information on Pumping Team, please visit: www.pumpingteam.com.
This press release contains forward-looking statements and information that are necessarily subject to risks, uncertainties, and assumptions. Many factors could cause the actual results, performance, or achievements of CEMEX or the transaction herein described to be materially different from those expressed or implied in this release, including not closing the asset sale. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. CEMEX assumes no obligation to update or correct the information contained in this press release. CEMEX is not responsible for the content of any third-party website or webpage referenced to or accessible through this press release.