CEMEX announces acquisition of Thailand's Saraburi Cement
May 11, 2001
CEMEX, S.A. de C.V. (NYSE: CX), announced today it has acquired 99% of the economic rights in Saraburi Cement Company, a Thai cement producer, for an enterprise value of approximately US$73 million.
The transaction will be effected through CEMEX Asia Holdings Ltd. (CAH), of which institutional investors own 23% and CEMEX 77%. CAH and the selling shareholders, which included Saraburi's largest shareholder, Italian-Thai Development Public Co., Ltd., executed the closing documentation.
"The investment in Thailand's Saraburi reflects CEMEX's global objective of geographic diversification and is consistent with our goal to enhance our portfolio in Asia through selective acquisitions," said Hector Medina, CEMEX Executive Vice President of Planning and Finance.
Rodrigo Treviño, Chief Financial Officer, said: "Our priority continues to be to use most of our operating free cash flow to reduce net debt and strengthen our capital structure. This investment will not impede our efforts to bring our targeted net-debt-to-EBITDA ratio below 2.7 times before the end of the year."
Located 81 miles north of Bangkok, Saraburi's dry process plant operates at full capacity at 700,000 metric tons per annum.
CEMEX is one of the three largest cement companies in the world, with approximately 77 million metric tons of production capacity. It is also the world's largest trader of cement and its leading producer of white cement. CEMEX is engaged in the production, distribution, marketing, and sale of cement, ready-mix concrete, aggregates, and clinker through operating subsidiaries on four continents. For more information, visit www.cemex.com.
Daniel Pérez Whitaker
(528) 152 2747
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José Antonio González