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GCC and CRH Have Received Regulatory Approval for Purchase-Sale Transactions for Certain U.S. Cement and Ready-Mix Operations

  • GCC will acquire the Trident cement plant in Three Forks, Montana from CRH
  • CRH will acquire ready-mix concrete and trucking assets in Oklahoma and Arkansas from GCC

CHIHUAHUA, Mexico, June 14, 2018 (GLOBE NEWSWIRE) -- Grupo Cementos de Chihuahua, S.A.B. de C.V., or GCC, (BMV:GCC*) announces that it has received regulatory approval for two separate transactions.  GCC will acquire the Trident cement plant in Three Forks, Montana from CRH. Concurrently, CRH will acquire ready-mix concrete operations and transportation assets in Oklahoma and Arkansas from GCC.

The Three Forks cement plant has a production capacity of 315,000 metric tons.  Including this acquisition, GCC will have eight cement plants in the U.S. and Mexico, with a total production capacity of 5.4 million metric tons; capacity will reach 5.8 million metric tons with the commissioning of the Rapid City, South Dakota expansion during the second half of 2018. 

CRH will acquire most of the ready-mix plants and transportation assets belonging to GCC in Oklahoma and northwest Arkansas.

GCC will continue to own and operate four ready-mix plants in the Fort Smith, Arkansas area, and own the main plant site and office building in Tulsa, Oklahoma, which it will lease to CRH. 

Both transactions are expected to close before the end of June 2018, subject to customary closing conditions. GCC will provide more details at that time.

Enrique Escalante, GCC’s CEO, said, “GCC has a clear strategy to expand our cement production and distribution network in the central part of North America, going from northern Mexico to Canada. The cement plant in Three Forks, Montana will integrate with GCC’s current production and distribution facilities, strengthen our presence in existing markets, and expand our footprint into contiguous areas, including Canada. Our focus in the ready-mix business is on markets that can be integrated with our cement network.”

About GCC

GCC is a leading supplier of cement, concrete, aggregates, and construction‐related services in the United States and Mexico, with an annual cement production capacity of 5.4 million metric tons. Founded in 1941, the Company’s shares are listed on the Mexican Stock Exchange under the ticker symbol GCC.

Forward Looking Statements

This press release may contain forward-looking statements. All statements that are not clearly historical in nature are forward-looking, and the words “anticipate,” “believe,” “expect,” “estimate,” “intend,” “project” and similar expressions are generally intended to identify forward-looking statements. These statements are subject to risks and uncertainties including, among others, changes in macroeconomic, political, governmental or business conditions in the markets where GCC operates; changes in interest rates, inflation rates and currency exchange rates; performance of the construction industry; pricing, business strategy, and other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may differ materially from the beliefs, projections, and estimates described herein. GCC assumes no obligation to update the information contained in this press release.

For further information, contact:

GCC Investor Relations:  
   
Ricardo Martinez
+52 (614) 442 3176
+ 1 (303) 739 5943
rmartinezg@gcc.com
Daniel Wilson, Zemi Communications
+1 (212) 689 9560

dbmwilson@zemi.com

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