HOUSTON (CNI)--Chemicals manufacturer Vulcan Materials said Thursday it will acquire Empresas ICA Sociedad Controladora's portion of the 50:50 Vulcan/ICA joint venture for $121.1m (Euro127.4m).
The transaction is expected to close promptly after US and Mexican regulatory approval. At that time, Vulcan will become the sole owner of the former joint venture's businesses, known collectively as the Crescent Market Companies.
The Vulcan/ICA joint venture produces aggregates in Mexico's Yucatan Peninsula and transports and sells them in various markets primarily along the US Gulf Coast. Vulcan will own the 6000-acre quarry site in Mexico, which has stone reserves in excess of 20 years, based on anticipated production rates, the company stated.
Said Donald James, Vulcan's chairman and chief: "This purchase is consistent with our long-term commitment to provide a reliable source of quality aggregates to the fast-growing US Gulf Coast. We look forward to realising the full financial benefit of being the sole owner of these operations. We expect the acquisition to be modestly accretive to earnings in 2001."
Vulcan Materials, based in Birmingham, Alabama, is one of the nation's foremost producers of construction aggregates, a major producer of other construction materials and a leading chemicals manufacturer, supplying chloralkali and other industrial chemicals.