Mexico’s largest cement producer — and one of the leading building materials manufacturers globally — hopes that a newly announced acquisition will bolster its position in the U.S. construction market.
Cemex said Thursday that it reached an agreement to buy Omega Products International, a top provider of stucco in the western U.S.
Most read on IEN:
- Wind Turbine Graveyard Sparks Lawsuit
- Offshoring Critic to Move Ohio Manufacturing to China
- Rendering Facility Sued for 'Boiling Blood and Death’ Odors Detected 10 Miles Away
- Unexploded Artillery and Lasers Await Trespassers at U.S. Army Test Center
Omega, based in Southern California, operates four production facilities across California, Colorado and Nevada, and serves both residential and commercial construction. Cemex officials said that the company offers “significant synergies” with its existing U.S. business and aligns with its broader growth efforts north of the border.
Reuters noted that Cemex’s chief executive took the helm last year amid promises to make Cemex a leaner company — including job cuts and divesting non-core segments — and to renew its emphasis on the U.S. market. The Omega deal follows Cemex’s move to take a majority stake in Alabama-based Couch Aggregates last fall.
For Omega, company officials said, the deal would provide the company with a broader customer base, as well as access to Cemex’s logistics and R&D operations.
Cemex officials said that Omega generated about $23 million in adjusted earnings last year; financial terms of the agreement were not disclosed. The companies expect the transaction to be completed by the end of next month.
Cemex also noted that the deal would help its efforts to “diversify” into “high-growth performance materials.” Stucco, the company said, offers building efficiency and energy cost benefits, and is part of a U.S. mortars market that is growing faster than construction as a whole.
Click here to subscribe to our daily newsletter featuring breaking manufacturing industry news.
