Argos USA LLC Completes $660 Million Acquisition of West Virginia Integrated Cement Plant and Distribution Terminals From Lehigh Hanson Inc. and Essroc Cement Corp.

November 30, 2016

S&C advised the U.S. operating subsidiary of Cementos Argos S.A., Argos USA LLC, in the completion of the acquisition previously announced on August 17 of an integrated cement plant in West Virginia and eight distribution terminals in the Mid-Atlantic from Lehigh Hanson Inc. and Essroc Cement Corp, subsidiaries of HeidelbergCement AG. The purchase price of $660 million was funded in part through a bridge loan.
 
The divestiture of the assets had been required by the FTC in connection with the merger between Heidelberg and Italcementi (Essroc's parent company). The FTC approved the purchase by Cementos Argos on November 15, 2016.
 
As a result of this acquisition, Cementos Argos will significantly expand its operations in the United States, where it is the second-largest concrete producer, and its international footprint, which also includes Honduras, Panama, Suriname, French Guiana, Haiti, the Dominican Republic and elsewhere in the Caribbean.
 
The S&C corporate team was led by Sergio Galvis and Werner Ahlers, along with Sergio Garcia Belmonte, Virginia Cueva and William Zichawo. John Estes and Akta Joshi advised Cementos Argos on the financing. Ronald Creamer and Katherine Zhang advised on tax matters; Robert Schlein, Kate Freedman and Carlo Zenkner advised on real estate matters; Rebecca Coccaro, Joshua Green and Sarah Remmer Long advised on employee benefits matters; Theodore Rogers advised on labor and employment matters; Matthew Brennan advised on environmental matters; Steven Holley and Bradley Smith advised on FTC and antitrust matters; and Spencer Simon advised on intellectual property matters.