Vulcan selling Newberry plant, other area properties
Published: Thursday, January 23, 2014 at 5:49 p.m.
Last Modified: Thursday, January 23, 2014 at 5:49 p.m.
Vulcan Materials Company announced an agreement Thursday to sell its Newberry cement plant and several ready-mix operations, including those in Gainesville and High Springs, as part of a $720 million sale to Colombia-based Cementos Argos S.A.
Cementos Argos is buying Vulcan’s cement and concrete operations in Florida and South Georgia, including 69 ready-mix concrete sites and 13 concrete block and building material sites, plus cement terminals and grinding facilities in Tampa and Port Manatee.
Vulcan, based in Birmingham, Ala., is keeping its aggregates operations in Florida, which include sand and limestone mines.
Vulcan Materials bought Jacksonville-based Florida Rock Industries in 2007.
Florida Rock opened the cement plant on Northwest County Road 235 in Newberry in 2000 and doubled its size with a second kiln in 2007.
A Vulcan spokeswoman would not say how many employees are affected by the sale.
In addition to the ready-mix and block operation on South Main Street in Gainesville, the sale includes ready-mix plants in High Springs, Williston, Starke and Ocala.
The sale is pending regulatory approval and is expected to close in the first quarter of the year.
Vulcan would use proceeds from the sale to buy $500 million worth of its debt securities through a tender offer and complete the $117 million sale of a quarry in California.
The deal would complete nearly $1 billion in Vulcan assets sold since February 2012, reducing total debt by almost $800 million.
Vulcan trades on the New York Stock Exchange under the symbol VMC. Cementos Argos trades on the Colombian BVC exchange.