About Us - Press Release - CEMEX to receive U.S.$100 million in cash proceeds from joint venture asset sale in the U.S.
February 22, 2010
CEMEX, S.A.B. de C.V. (NYSE: CX) announced today that its 49.9% owned Ready Mix USA LLC joint venture has completed the sale of 12 active quarries and certain other assets to SPO Partners & Co. for U.S.$420 million. The active quarries, which consist of 2 granite quarries in Georgia, 9 limestone quarries in Tennessee, and 1 limestone quarry in Virginia, are operated by Ready Mix USA LLC and were deemed non strategic by CEMEX and Ready Mix USA LLC, its joint venture partner.
The proceeds from the sale will be partly used to reduce debt held by Ready Mix USA LLC, and to effect a cash distribution of approximately U.S.$100 million to each joint venture partner, including CEMEX. CEMEX, which does not consolidate the results of Ready Mix USA LLC, expects to use its cash proceeds from this divestment to reduce outstanding debt and to enhance its liquidity position.
This asset divestment marks another milestone in CEMEX’s efforts to regain its financial flexibility. Other such milestones include the completion of the refinancing of U.S.$15 billion of CEMEX’s outstanding debt and the issuance of close to U.S.$2.3 billion in notes, including the U.S.$500 million raised last month. Additionally, CEMEX has raised U.S.$2.2 billion in equity and mandatorily convertible securities and sold its Australian operations to Holcim for U.S.$1.7 billion.
CEMEX is a global building materials company that provides high-quality products and reliable service to customers and communities in more than 50 countries throughout the world. CEMEX has a rich history of improving the well-being of those it serves through its efforts to pursue innovative industry solutions and efficiency advancements, and to promote a sustainable future. For more information, visit www.cemex.com
SPO Partners & Co. is a San Francisco-based investment partnership that makes concentrated, long-term investments in public and private companies. Investing with a time horizon that frequently exceeds ten years, SPO invests across a wide range of industries including basic materials, media, telecom, energy, power and real estate.
This press release contains forward-looking statements and information that are necessarily subject to risks, uncertainties, and assumptions. Many factors could cause the actual results, performance, or achievements of CEMEX to be materially different from those expressed or implied in this release, including, among others, changes in general economic, political, governmental and business conditions globally and in the countries in which CEMEX does business, changes in interest rates, changes in inflation rates, changes in exchange rates, the level of construction generally, changes in cement demand and prices, changes in raw material and energy prices, changes in business strategy, and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. CEMEX assumes no obligation to update or correct the information contained in this press release.