Sources: Texas Industries, Inc., Dallas; Cemex USA, Houston; CP staff
TXI announced that its subsidiary has entered into an asset swap with Cemex USA, in which TXI will acquire the ready mix and aggregate operations of Cemex that serve the Austin metropolitan market. The transaction was finalized July 29 and brings TXI one aggregate and three ready mixed concrete plants. "While times remain challenging, we will continue to investigate opportunities that enhance the company's long-term strategic position," said TXI CEO Mel Brekhus.
The deal allows TXI to further supplement the company's growing resources in the region, including the recently-completed acquisition of the Central Texas Ready Mix division—the result of a ready mixed and aggregate asset swap with Trinity Industries/Transit Mix Concrete & Materials—and the current $350 million-plus capacity expansion of its Hunter Cement plant. It also augments TXI's Austin aggregate operations. "This transaction further enhances our vertical integration strategy," said Jamie Rogers, vice president and COO. "We believe the Austin market will experience strong growth over the long-term, and are excited about expanding our leadership position in this region."
In exchange for these facilities, TXI transferred to Cemex seven ready mixed concrete plants in the Houston marketplace, where TXI will continue to operate cement and aggregate terminal operations along with packaged materials facilities. “This transaction further strengthens Cemex USA’s position as a vertically integrated construction materials supplier in one of the largest concrete markets in the country, and enhances our ability to efficiently service our customers,” said Scott Ducoff, Cemex's regional president, Texas & New Mexico Region.
In early-April 2011, TXI also acquired 23 concrete plants, running north of San Antonio through Hillsdale, Texas, from Transit Mix Concrete. The deal also saw transfer of TXI’s Anacoco, Paradise and Beckett sand & gravel sites—serving markets in east and north Texas, plus Louisiana, some with Transit Mix concrete plants—to Trinity Materials Inc. The investment allowed TXI to optimize its Austin aggregates operations and new capacity at Hunter Cement, whose output is set to more than double from an existing 900,000 tpy.