Cemex has reached an agreement to sell its Canary Islands operations to Cimpor Inversiones, a Spanish investment holding company and subsidiary of Cimpor Cimentos de Portugal, for about 162 million euros (US$211 million). The proceeds will be used to reduce debt.
The transaction, which is subject to the approval of Spanish regulatory authorities, includes Cemex's cement and ready-mix assets on the Spanish island of Tenerife and 50 percent of the shares in two joint ventures, Cementos Especiales de las Islas (CEISA) and Inprocoi. In 2007, these operations generated about 189 million euros (US$260 million) in revenues.
Cemex manages, directly and through its joint ventures, two grinding mills and 19 other plants, including ready-mix, mortar and precast facilities in the Canary Islands.
J.P. Morgan and RBS acted as financial advisors to Cemex in the transaction.