Texas Industries Inc. (TXI) announced that its subsidiaries have entered into agreements to exchange its expanded shale and clay aggregates manufacturing business for the ready-mix concrete business of subsidiaries of Trinity Industries Inc. in east Texas and southwest Arkansas.
Texas Industries will transfer its expanded shale and clay manufacturing facilities in Streetman, Texas; Boulder, Colo., and Frazier Park, Calif.; and its DiamondPro product line in exchange for 42 ready-mix concrete plants stretching from Texarkana to Beaumont in east Texas and southwestern Arkansas, as well as two aggregate distribution facilities in Beaumont and Port Arthur, Texas, and related assets.
“This transaction will expand TXI's ready mix concrete capacity by nearly 50 percent in strong, stable local East Texas and Arkansas markets. It fits our core vertical integration strategy and is timed for both market recovery in this region and capacity addition in our cement plant in central Texas. The Transit Mix employees have built a great business and we look forward to welcoming them to the TXI family at this exciting time,” said Jamie Rogers, TXI's vice president and chief operating officer.
The transaction is expected to close by the end of 2012. Closing is subject to negotiation of ancillary agreements, satisfactory completion of due diligence, receipt of required consents and approvals and other customary conditions.
TXI is the largest producer of cement in Texas and a major cement producer in California. TXI is also a major supplier of construction aggregate, ready-mix concrete and concrete products.