Cemex sells Nordic and Baltic assets
By Sandy Guthrie20 February 2019
Cemex is selling its assets in the Baltic and Nordic regions to German building materials group Schwenk for approximately €340 million.
Mexican multinational Cemex manufactures and sells cement, ready-mix concrete and aggregates in more than 50 countries.
The Baltic assets being sold consist of a cement production plant in Brocēni, Latvia, with a production capacity of approximately 1.7 million tonnes, plus four aggregates quarries, two cement quarries, six ready-mix plants, a marine terminal and a land distribution terminal in Latvia.
It also includes Cemex’s indirect interest of approximately 38% in a cement production plant in Akmene in Lithuania, with a production capacity of approximately 1.8 million tonnes.
In addition, the exports business to Estonia is also included as part of the divestment.
The Nordic assets consist of three import terminals in Finland, four import terminals in Norway, and four import terminals in Sweden.
Cemex said that consolidated operating EBITDA (earnings before interest, taxes, depreciation and amortization) generated by the divested assets came to approximately €27.3 million in 2018.
It added that the proceeds expected from this divestment would be used mainly for debt reduction and for general corporate purposes.
The closing of this transaction was said to be subject to satisfying the standard conditions for this type of transaction, which includes authorisation by regulators. Cemex currently expects to finalise this divestment during the first quarter of 2019.