Cemex announced today the recommended acquisition of RMC Group for $4.1 billion in cash. Including the assumption of debt, the enterprise value of the transaction is approximately $5.8 billion. The boards of directors of both companies have unanimously approved the transaction.
Cemex said in a statement that the combined company will be one of the world’s largest building materials companies, with pro forma revenues of more than $15 billion. The transaction is expected to close around the end of 2004.
“The acquisition of RMC is a very compelling strategic opportunity for Cemex,” said Lorenzo H. Zambrano, Chairman and CEO of Cemex. “RMC’s strong positions in cement, aggregates and ready mixed concrete will add to our existing operations in these areas and, combined with our global presence in cement products, enhance our leading position in the global building materials market.”
RMC, headquartered in the UK, is an international producer and supplier of materials, products and services used primarily in the construction industry. It is one of Europe’s largest producers of cement and one of the world’s largest suppliers of ready mixed concrete and aggregates.
In 2003, RMC sold approximately 15.7 million tons of cement, 55.5 million cubic metres of ready mix concrete and 158 million tons of aggregates, generating revenues, excluding joint ventures and associated undertakings, of $7.9 billion.
Cemex’s acquisition is subject to customary UK takeover conditions, including regulatory approvals and the approval of RMC shareholders.