COPENHAGEN (dpa-AFX) - HeidelbergCement AG (HDELY.PK) Thursday announced that it has entered into a definitive agreement, through its units Essroc Corp. and Lehigh Hanson, Inc., to sell its Martinsburg, West Virginia cement plant and eight related terminals to Argos USA LLC, a subsidiary of Cementos Argos. The transaction purchase price is $660 million on a cash and debt-free basis.
HeidelbergCement expects the transaction to close in the fourth quarter of 2016.
The disposal was required by Federal Trade Commission Decision and Order to address competition concerns arising from the Italcementi acquisition. The agreement is subject to the approval of the FTC and other customary closing conditions.
Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement, said, 'With the disposal of the Martinsburg plant we have successfully finalized our disposal program in the context of the Italcementi acquisition. Together with the disposals of the non-core assets and the Belgium assets of Italcementi we have exceeded our €1 billion target on disposal proceeds and thereby further improved the net financial position of HeidelbergCement.'
HeidelbergCement was advised by Citi, Shearman & Sterling and Jones Day.
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