CEMEX, Ready Mix USA join forces

Published 12:00 am Friday, June 3, 2005

DEMOPLIS-In an effort to supply the growing construction needs of the Southeast market CEMEX and Ready Mix USA have announced plans for a joint venture that will include the Demopolis CEMEX plant.

CEMEX Inc., the U.S. subsidiary of CEMEX (NYSE:CX), and Ready Mix USA, a private ready-mix concrete company with operations in the Southeastern United States, announced Wednesday that they have signed a Memorandum of Understanding to create a Joint Venture to satisfy the growing construction needs of the Southeast region of the country.

Under the proposed arrangement, CEMEX Inc. will contribute two cement plants including Demopolis and Clinchfield, GA, eleven cement terminals, and its ready-mix aggregates, and block assets in the Florida Panhandle to the joint venture. Ready Mix USA will contribute all of its ready-mix and aggregate operations in Alabama, Georgia, the Florida Panhandle and Tennessee, as well as its block operations in Arkansas, Tennessee, Mississippi, Florida and Alabama. The cement assets of the joint venture will be managed by CEMEX, and the ready-mix, aggregate and block assets will be managed by Ready Mix USA.

According to Gilberto Perez, President of CEMEX Inc., the Joint Venture will be an important building block in CEMEX’s vertical integration strategy.

“This strategic alliance will help us serve our customers even better than we do today,” Perez said. “This will allow us to address the rapidly growing needs of the Southeast construction market, which is one of the most dynamic in the country. This is a win-win situation for both companies as it enable us to create more value for our customers.”

Marc Bryant Tyson, President of Ready Mix USA said the two have worked together for years and the joint venture will be a positive move for both companies.

“The CEMEX family has been a great partner of ours for years,” Tyson said. “The development of this joint venture will allow us to focus on our customers and assure that we provide them with great quality products and reliable supply to satisfy their construction needs.”

It is currently anticipated that, after the third anniversary of the formation of the joint venture, for an extended period of time, Ready Mix USA will have the option, but not the obligation, to require CEMEX to purchase Ready Mix USA’s interest in the joint venture on terms to be set forth in the definitive joint venture agreements.

The transaction is expected to close within the next 45 days, at which time definitive terms and conditions will be disclosed.

Most residents of Demopolis are familiar with CEMEX and its functions. However, many may not be very familiar with Ready Mix USA. Ready Mix USA serves the construction industry throughout the Southeast. Ready Mix USA is a relatively young company, which is majority owned and operated by the son and grandson of the late Coach Paul William Bryant.

The company began in 1995 with the partial purchase of Reynolds Ready Mix. Today, the USA family of companies consists of concrete ready-mix plants, concrete masonry manufacturing facilities and construction materials distribution locations, and sand and gravel operations. For more information about the company, visit www.rmusainc.com.