The conglomerate signed a definitive agreement to sell the operations of Giant Cement Holding, a subsidiary of Fortaleza Materiales.
Grupo Carso, a conglomerate owned by businessman Carlos Slim that operates in the commercial, industrial, infrastructure and energy sectors, signed a definitive agreement to sell the operations of Giant Cement Holding, a subsidiary of Fortaleza Materiales, for US$600 million.
“In order to carry out this transaction, it was necessary to spin off Keystone Cement Company, and selected non-operating lands belonging to Giant Cement Company, Dragon Products Company, and Giant Resource Recovery were excluded,” Grupo Carso said in a statement.
The agreement signed with Heidelberg Materials, a cement producer with a presence on the East Coast of the United States, will allow this cement company to strengthen its operations in the Southeast and New England, two important American markets.
For the German cement company, the investment will provide around 60 million dollars in operating cash flow (EBITDA) in the first year of operation.
"The acquisition of GCHI's assets will further strengthen our cement footprint in the growing markets of the southeastern United States and New England," said Chris Ward, president and CEO of Heidelberg Materials North America.
The acquisition includes a cement plant with an annual capacity of 800,000 tons of cement, located in Harleyville, South Carolina.
As well as a network of four cement distribution terminals in Georgia and South Carolina, as well as a joint venture deepwater import terminal in Savannah, Georgia.
Assets located in New England include a cement and slag distribution terminal in Newington, New Hampshire, and a deepwater import terminal in Boston, Massachusetts.
It also includes the alternative fuel recycling business Giant Resource Recovery, with four facilities located in the eastern United States.
The transaction is subject to customary post-closing adjustments and is expected to close during the first quarter of 2025.
For its part, Grupo Carso acquired a 55% stake in Giant Cement Holding for US$220 million in 2016, through Elementia Materiales.
