HeidelbergCement announced that its subsidiary Lehigh Cement Co. LLC has signed an agreement to sell its 51 percent position in Lehigh White Cement Co. to the minority shareholders Aalborg Cement Co. Inc. and Cemex Inc. The enterprise value of the transaction amounts to about $140 million.
“As a niche product with small volumes, the standalone production of white cement does not fit to the strategic focus on efficiency of HeidelbergCement,” said Dr. Bernd Scheifele, chairman of the managing board of HeidelbergCement. “The disposal is part of our global portfolio review and optimization with the goal to generate additional cash flow in order to support our disciplined growth and increase shareholder returns.”
Lehigh White Cement Co. operates two plants in Waco, Texas, and York, Pa., with a combined annual production capacity of approximately 255,000 tons.
Closing of the transaction is subject to customary conditions and is expected during the first quarter 2018.