CEMEX Selling U.S. Reinforced Concrete Pipe Unit for $500M

November 29, 2016

2 Min Read
CEMEX Selling U.S. Reinforced Concrete Pipe Unit for $500M
Image courtesy of CEMEX

Global building materials company CEMEX is selling its U.S. reinforced concrete pipe manufacturing business to Quikrete Holdings Inc. for $500 million and an additional $40 million dependent upon future performance, the Monterrey, Mexico-based company announced Monday.

The divestment by one of CEMEX S.A.B. de C.V.’s American subsidiaries is expected to close in the first quarter of 2017.

Rinker Materials, the reinforced concrete pipe company sold to Quickrete, has more than 30 pipe and precast plants in the United States, and the acquisition will “propel Quikrete Holdings to leadership in the concrete drainage products market,” reported Concrete Products on Tuesday.

CEMEX said it will use the proceeds from the transaction to reduce its debt and for general corporate use.

Concrete Products noted that CEMEX has faced elevated debt since its 2007 purchase of the Rinker Group, and that the Mexican company has engaged in two “nine-figure” sales this year to reduce its debt and streamline its American portfolio.

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