GCC completes acquisition of US assets from Cemex
Grupo Cementos de Chihuahua (GCC) announced that it has completed the acquisition of certain assets located in the United States owned by Cemex for an amount of US$ 306 million.
The assets consist of a cement plant located in Odessa, Texas; two cement distribution terminals located in Amarillo and El Paso, Texas; and the concrete, aggregates, asphalt and building materials businesses in El Paso, Texas and Las Cruces, New Mexico. The acquisition comprises all facilities, equipment and inventories.
Enrique Escalante, CEO of GCC, said in a press release: “This acquisition represents a significant advance in our strategy of sustainable cement growth in the United States, in markets contiguous to those of GCC´s geographic footprint. With these assets and colleagues joining the Company, we will enhance the competitive advantage of our logistics system, expand our product portfolio and optimize our operations by sharing best practices.”
This transaction was financed with internal funds and an unsecured loan of US$ 253.5 million. GCC concurrently refinanced its syndicated bank loan with a US$ 184.9 million secured loan. The new bank debt structure totals US$ 438.4 million, of which approximately US$ 300 million has a seven-year maturity and the remainder will mature in five years. Both loans were contracted with Banco Inbursa, S.A.
GCC is a leading supplier of cement, aggregates, concrete and construction-related services in the United States and Mexico. The Company has annual cement production capacity of 5.0 million tons. Founded in 1941, the Company’s shares trade on the Mexican Stock Exchange under the ticker symbol GCC.