Cement producer CEMEX has agreed to sell its Bath Twp. plant in Greene County.
Monterrey, Mexico-based CEMEX said Monday that one of its subsidiaries in the United States has signed a definitive agreement for the sale of its Fairborn-area cement plant and cement terminal in Columbus to Eagle Materials Inc. for about $400 million.
The 2016 EBITDA — earnings before interest, taxes, depreciation and amortization — for the properties is estimated to be $33 million, the company said.
The proceeds will be used to cut debt, CEMEX said.
In its own announcement, Dallas, Texas-based Eagle Materials said the purchase is part of the company’s growth strategy.
“Our strategy has been to grow the cement side of our business,” Dave Powers, Eagle Materials president and chief executive, said in his company’s release. “The Fairborn plant extends our U.S. cement system and connects but does not overlap with the market reach of our existing plants. This high-quality cement plant is a compelling fit with our strategic objectives and our criteria for new investment.
“These assets will allow us to participate more fully in the U.S. construction industry and further positions the company in target U.S. heartland growth markets,” he added.
A message seeking comment was left for Powers.
The cement plant has the capacity to grind nearly one million tons of clinker annually, Eagle Materials said. Clinker is an ingredient in cement.
In 2009, the city of Fairborn took over a former CEMEX plant within Fairborn city limits, off East Xenia Drive, as a step to allow Wright State University to use the 54-acre property as a training site for emergency first responders.
Bank of America Merrill Lynch is acting as financial advisor to CEMEX in the transaction.
