Eagle Materials sells aggregate, concrete assets

Eagle Materials sold its Western Aggregates and Mathews Readymix operations for $93.5 million to Teichert, a California-based construction company.

Western Aggregates’ vested rights to mine covers 3,900 acres and includes more than 900 million tons of aggregate, according to Eagle Materials. Mathews Ready Mix’s assets include three concrete batch plant locations and 26 trucks.

“This transaction represents the sale of non-core assets on the heavy-side of our company,” says Michael Haack, Eagle Materials president and CEO. “In using the term ‘non-core,’ I mean that they do not provide essential support to our primary cement plant network. We are especially keen on having the most strategically coherent set of heavy-side assets established in advance of our previously announced spin-off.

“These divestitures, along with the integration of the Kosmos cement plant acquisition, create a focused heavy materials business with a broad capability to serve U.S. heartland cement markets,” Haack adds.

Eagle Materials announced earlier this month that it will hold off on the separation of its heavy and light materials businesses due to market conditions caused by the ongoing coronavirus (COVID-19) pandemic. In a statement, Eagle Materials said it “remains committed to the separation and reaffirms that the strategic rationale for the separation is unchanged, although the timing for the expected completion of the separation has become uncertain. The company continues its preparation to ensure that the two businesses are well-positioned for the separation when the markets recover.”

Eagle Materials manufactures and distributes sand and aggregate, concrete, cement, gypsum wallboard and recycled paperboard from more than 75 facilities across the United States. Eagle Materials is headquartered in Dallas.