Eagle materials inc. (nyse:exp) entered into an asset purchase agreement to acquire kosmos cement plant and related assets of kosmos cement company for approximately $670 million.

Eagle materials inc. (nyse:exp) entered into an asset purchase agreement to acquire kosmos cement plant and related assets of kosmos cement company for approximately $670 million on november 25, 2019. the consideration is payable in cash and is subject to a customary post-closing inventory adjustment. eagle materials will assume certain liabilities and obligations relating to the assets including contractual obligations, reclamation obligations and various other liabilities and obligations arising out of or relating to the kosmos business after the closing of the transaction. eagle intends to finance the acquisition through a combination of cash on hand and borrowings under a new term loan. jpmorgan chase bank, n.a. and goldman sachs bank, usa have agreed to arrange a $665 million syndicated term loan facility, with a committed 364-day bridge facility of an equal amount available on a “certain funds” basis should the syndication of the term loan facility be unsuccessful for the purpose of funding the cash consideration and the fees and expenses incurred in connection with the transaction. for the year ended september 30, 2019, the assets being divested had ebitda of $55 million. the transaction is subject to expiration or termination of the applicable waiting period under the hart-scott-rodino antitrust improvements act of 1976, as amended, the respective representations and warranties of the parties being true and correct, subject to certain materiality exceptions, obtaining certain governmental and third party consents and the performance by the parties of their respective obligations under the agreement. the transaction is expected to close in the first quarter of 2020. the proceeds to cemex from this transaction will be approximately $499 million. the proceeds obtained from this transaction will be used mainly for debt reduction and for general corporate purposes. goldman, sachs & co. is acting as the financial advisor to eagle materials. bofa securities, inc. and citigroup global markets inc. are acting as financial advisors in this transaction for cemex, s.a.b. de c.v. parent of kosmos cement company. sean doyle, dohyun kim and clifford aronson of skadden, arps, slate, meagher & flom llp acted as legal advisors to cemex, s.a.b. de c.v.
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