Rock Products

OCT 2016

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8 • ROCK products • October 2016 www.rockproducts.com I N D U S T RY N E W S IN THE KNOW FAST FACT The acquisition will increase Eagle's U.S. cement capacity by roughly 20 percent and is expected to be accre- tive to earnings imme- diately post-closing. Eagle Materials Acquires Ohio Cement Plant, Other Assets Eagle Materials Inc. entered into a definitive agreement with a subsidi- ary of Cemex S.A.B. de C.V., to purchase Cemex's Fairborn, Ohio, cement plant, as well as related assets, which include a distribution terminal in Columbus, Ohio, and a cement bagging operation. The Fairborn cement plant has the capacity to grind nearly one million tons of clinker annually. The purchase price is $400 million, subject to customary post-closing adjustments. Eagle anticipates certain tax benefits arising from the transac- tion, the net present value of which is expected to be $50 million. The transaction is expected to close in the fourth quarter of calendar 2016, or shortly thereafter, following the receipt of required regulatory approvals. Calen- dar 2016 revenue and EBITDA for the acquired assets is estimated to be $79 million and $33 million, respectively. The acquisition will increase Eagle's U.S. cement capacity by roughly 20 per- cent and is expected to be accretive to earnings immediately post-closing. Dave Powers, Eagle Materials Inc. president and CEO, said the agree- ment represents a significant step in the company's growth strategy. "Our strategy has been to grow the cement side of our business. The Fairborn plant extends our U.S. cement system and connects but does not overlap with the market reach of our existing plants. This high-quality cement plant is a compel- ling fit with our strategic objectives and our criteria for new investment. These assets will allow us to participate more fully in the U.S. construction industry and further positions the company in target U.S. Heartland growth markets." Eagle intends to finance the acquisition through a combination of cash on hand and borrowings under its existing bank credit facility. The Dallas-based company now man- ufactures and distributes cement, gypsum wallboard, recycled paper- board, concrete and aggregates, and oil and gas proppants from 40 facilities across the U.S. DOT Awards $800 Million For Infrastructure Projects FAST FACT Transportation Secretary Anthony Foxx announced that 18 transportation projects in 15 states have been awarded federal grants. U.S. Department of Transportation Sec- retary Anthony Foxx announced that 18 projects in 15 states have been awarded almost $800 million in federal grants through the Fostering Advancements in Shipping and Transportation for the Long-term Advancement of National Efficiencies (FASTLANE) program. FASTLANE projects include a $165 mil- lion grant toward the Atlantic Gateway project in Virginia, a $62 million grant to improve U.S. 69/75 in Oklahoma and a $44 million grant for the Port of Savan- nah International Multimodal Connector. The grants were combined with federal, local, state and private source funding to support $3.6 bil- lion in infrastructure investment. The FASTLANE grant program was established by the Fixing America's Surface Transportation (FAST) Act highway bill which was passed last year. Other FASTLANE grant projects include: •  SR-11 Segment 2 & Southbound Con - nectors, $49.28 million. •  Arlington Memorial Bridge Recon- struction Project, $90 million. •  Truck Parking Availability Systems, Florida, $10.77 million •  U.S. 95 North Corridor Access Improvement Project, Idaho, $5.1 million. •  Cedar Rapids Logistics Park, Iowa, $25.65 million. •  Maine Intermodal Port Productivity Project, $7.71 million. •  I-390/I-490/Lyell Avenue Inter- change, $32 million. •  Cross Harbor Freight Program, $10.67 million. •  Coos Bay Rail Line Tunnel Rehabilita- tion Project, $11 million. •  Strander Boulevard Extension & Grade Separation Phase 3, $5 million. •  South Lander Street Grade Separa- tion & Railroad Safety Project, $45 million. •  I-39/90 Corridor Project, $40 million. • I-10 improvements from Phoenix to Tucson, $54 million. • I-10 freight corridor rehabilitation & expansion, Louisiana, $60 million. •  Boston's Conley Terminal Intermodal Improvements, $42 million.

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