Cemex SAB agreed to sell $400 million in U.S. properties as the largest cement maker in the Americas seeks to lower debt by divesting some assets.
The deal with Grupo Cementos de Chihuahua SAB includes cement plants in Odessa, Texas, and Lyons, Colorado, Cemex said in a statement Monday. It also covers three terminals and the building-materials business in El Paso, Texas, and Las Cruces, New Mexico.
Cemex is targeting asset sales of $1 billion to $1.5 billion by the end of next year as part of its push to restore an investment-grade capital structure after the global financial crisis pushed it to the brink of default. In March, the company announced the initial public offering of a minority stake in its Philippines unit and the $53 million sale of its operations in Bangladesh and Thailand.
“We consider the news as favorable because the company continues to execute its divestment plan,” Jose Espitia, an analyst at Grupo Financiero Banorte SAB, said in a note to clients.
Cemex rose 1.4 percent to 12.95 pesos at 11:52 a.m. in Mexico City.
The company issued $1 billion in 7.75 percent notes due in 2026 last month, saying it would use the proceeds to repay debt with higher interest rates and shorter maturities.
The deal with Cementos de Chihuahua, in which Cemex holds a minority stake, is expected to close by year-end, subject to due diligence by the parties and regulatory approval, according to the statement.