CEMEX Signs Agreement to Divest U.S. Assets.MONTERREY, Mexico -- CEMEX CEMEX Cementos Mexicanos , S.A. de C.V. (NYSE NYSE See: New York Stock Exchange :CX) announced today that it has signed an agreement with Votorantim Participacoes S.A. for the sale of certain CEMEX assets in the Great Lakes region The Great Lakes region can refer to:
Votorantim is acquiring the Charlevoix and Dixon-Marquette cement plants, and certain distribution terminals located in the Great Lakes Region. CEMEX began evaluating alternatives to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. these assets at the beginning of 2004, after reviewing its strategic position in the U.S. The transaction will be structured as a sale of assets. The closing of this transaction is subject to the satisfaction of customary conditions precedent, and it is expected to occur during the first quarter of 2005. CEMEX will keep its distribution terminal located in Detroit. The value to be realized from the Votorantim transaction is expected to approximate U.S.$ 389 million. Total production capacity of both cement plants is close to 2 million metric tons a year and has represented approximately nine percent of the current operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. generation of CEMEX's U.S. business. CEMEX is a leading global producer and marketer of cement and ready-mix products, with operations concentrated in the world's most dynamic cement markets across four continents. CEMEX combines a deep knowledge of the local markets with its global network and information technology systems to provide world-class products and services to its customers, from individual homebuilders to large industrial contractors. For more information, visit www.CEMEX.com This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and information that are necessarily subject to risks, uncertainties and assumptions. There can be no assurance that the transaction will close or that it will close on the terms described above. CEMEX assumes no obligation to update or correct the information contained in this press release. |
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