(Reuters) - Building material maker Eagle Materials Inc (EXP.N) will buy two cement plants from larger peer Lafarge North America Inc LAFPN.UL 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.
Reporting by Tej Sapru in Bangalore; Editing by Don Sebastian