Elementia, S.A.B. de C.V. announced that its board of directors gave final approval to complete the acquisition of a 55 percent stake and full control of Giant Cement Holding Inc. from Cementos Portland Valderrivas S.A. for $220 million.

“Today marks a major milestone for Elementia as we successfully enter the U.S. cement market and take another solid step within our inorganic growth strategy,” Fernando Ruiz Jacques, Elementia chief executive officer, said. “The work of our transition team is already underway to extract the tremendous value we see in Giant.”

The deal saw a) Elementia pay $220 million for a 55 percent stake and full control of the business; b) Elementia grant Giant Cement a $305 million loan through committed credit lines; and c) Giant Cement utilize both resources (totaling $525 million) to pre-pay 100 percent of its current debt, as previously agreed between the parties.

The debt replacement will reduce Giant’s financial costs by more than 75 percent, freeing sufficient cash flow to execute investments required to capture opportunities Elementia envisions in the U.S.

Elementia adds more than 2.8 million tons of annual cement production capacity through three cement plants in South Carolina, Maine and Pennsylvania; six cement terminals serving New England, New York, Virginia and the Carolinas; and three limestone and two sand & gravel operations. Prior to the transaction, Elementia established a U.S. foothold in the fiber cement siding market, acquiring Georgia-based Plycem USA.

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