Sept 26 Building material maker Eagle Materials
Inc will buy two cement plants from larger peer Lafarge
North America Inc for $466 million, expanding its
production capacity by 60 percent.
The company said it will buy Lafarge's Sugar Creek, Missouri
and Tulsa, Oklahoma plants and related assets, which generated
$178 million in revenue in the year ended June 30.
Eagle will supply cement to Lafarge for four to five years
while Lafarge will supply low-cost alternative fuels to the
operations it sells.
The deal will be funded through Eagle's existing credit
facility and an equity offering.
The Dallas, Texas-based company's shares closed up 3 percent
at $43.30 on the New York Stock Exchange on Wednesday.