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Cemex Sheds Concrete Pipe Arm for $500M

Wednesday, December 7, 2016

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Mexican multinational building materials company Cemex S.A.B. de C.V. announced an approved sales agreement between one of its United States subsidiaries and what is said to be the largest manufacturer of packaged concrete and cement mixes in the U.S. and Canada.

According to a Nov. 28 statement, the Monterrey, Mexico-based company came to a definitive agreement to divest its U.S. reinforced concrete pipe manufacturing business to Quikrete Holdings Inc., headquartered in Atlanta.

Quikrete will pay $500 million to acquire the business, plus an additional $40 million contingent on future performance, per the terms and conditions of the sale.

Cemex will reportedly use the proceeds from the deal primarily for debt reduction and for general corporate purposes.

Cemex Monterrey plant
By Hector Martínez / CC BY-SA 2.0 via Wikimedia Commons

Mexico-based building materials company CEMEX announced it had come to an agreement on terms and conditions to sell its of U.S. reinforced concrete pipe manufacturing business to Quikrete Holdings Inc. for $500 million, with an additional $40 million contingent on future performance.

Closing of this transaction is subject to the satisfaction of certain conditions, including approval from regulators.

The sale is expected to be finalized in the first quarter of 2017, Cemex said.

Concrete Pipe Manufacturer

Industry magazine Concrete Products identified the Houston, TX-based Rinker Materials as the subject of the acquisition.

Founded in 1963 and acquired by Cemex in 2007, Rinker Materials describes itself as one of the nation’s largest and leading manufacturers of concrete pipe and related products.

It produces a full range of concrete piping products including various diameters of concrete pipe, precast box culverts, various precast components and its own stormwater pollution control device.

With approximately 30 pipe and precast plants in 20 states, the purchase would launch Quikrete Holdings into a leadership position in the concrete drainage products market, the magazine noted.

Moreover, the deal is complementary to Quikrete’s acquisition of West Chester, OH’s Contech Engineered Solutions, it added. Contech’s product portfolio includes solutions for bridges, drainage, erosion control, retaining wall, sanitary sewer and stormwater management products, according to its website.

About the Companies

Cemex provides products and service to customers and communities in more than 50 countries throughout the world, according to its website. The firm employs approximately 43,000 staff globally, and reported sales of $15.23 billion at year-end 2013.

Its U.S. network includes 13 cement plants, 46 strategically located distribution terminals, 74 aggregate quarries and more than 350 ready-mix concrete plants.

Founded in Mexico 1906, the company is celebrating its 110th anniversary this year.

According to its website, The Quikrete Companies is described as an innovative leader in the commercial building and home improvement industries. Collectively, Quikrete products are manufactured and distributed from more than 150 facilities in the U.S., Canada, Puerto Rico and South America, according to its website.

Founded in 1940 in Columbus, OH, its portfolio of professional-grade and consumer products include concrete mixes, mortar mixes, cements, concrete repair products, stuccos, waterproofing products, tile setting systems, hardscapes, blacktop products, floor underlayments, sand and aggregates, and other seasonal items.


Tagged categories: Acquisitions; Business matters; Cement; Cemex; concrete; Latin America; North America; Pipeline; Pipes; Program/Project Management; Quikrete

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