Argos Buys U.S. Plants From HeidelbergCement for $660 Millionby and
German company says disposal proceeds ahead of target
Argos to add one plant and eight related terminals in U.S.
The transaction includes a factory in Martinsburg, West Virginia, and eight related terminals, the German company said in statement Thursday. HeidelbergCement is divesting the assets to meet demands from U.S. antitrust regulators as part of its purchase of Italcementi.
Cemargos, as the South American company is known, had signaled it’s hunting for acquisitions. In 2014 it weighed a bid for about $1 billion in assets that Lafarge SA and Holcim Ltd. put up for sale as a result of their merger, people familiar with the matter said at the time.
For HeidelbergCement, the deal marks the end of a divestment program linked to the $4.68 billion Italcementi transaction. The German company said today that proceeds exceeded its 1 billion-euro ($1.1 billion) target. Citigroup, Shearman & Sterling and Jones Day advised it on the sale.
Shares of the Heidelberg-based company rose 1 percent to 80.77 euros at 9:15 a.m. in Frankfurt.
JPMorgan is providing a bridge loan to cover the majority of the purchase and acted as an adviser to Argos, the Medellin-based company said in a statement. Argos plans to sell assets in the short term to fund the acquistion and cover the loan.