Colombia-based construction multinational Argos S.A. has purchased $720 million worth of assets from the United States’ Vulcan Materials, according to reports in the Colombian media Thursday.
The deal will see assets including a cement plant in Florida and grinding facility in Georgia change hands from Vulcan, the largest producer of construction materials in the United States, to Argos, the largest producer of cement in Colombia.
Vulcan reportedly initiated the purchase to increase its cash flow and ease the burden of some of its long-term debts.
“Divesting these non-core cement and concrete assets, at a full and fair valuation, allows us to further enhance our financial strength and strategic focus as the leading aggregates producer in the fastest-growing regions and urban markets of the United States,” said the head of Vulcan Materials, Don James, according to PR Newswire.
Argos’ new assets brought in a reported $153 million in profit in 2013, a number expected to rise in the coming years. With the purchase, the Colombian company’s production capacity could rise as high as 20 million metric tons per year, making Argos, already one of the five largest cement companies in Latin America, the second-largest producer in the southeastern United States.
In the first three quarter of 2013, Argos’ U.S. operations produced a reported $560 million in revenue, almost 30% of the company’s total income.
Argos has 307 plants throughout the Western Hemisphere, including in Honduras, Panama, Suriname, Dominican Republic, the United States and Colombia itself.
- Argos compró activos por US$ 720 millones en EE. UU (Portafolio)