UPDATE: Eagle Materials Commences 3 Mln Offering, Acquires Cement Plants of Lafarge North America - Shares Now Up 6%

By MidnightTrader.com Staff,

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Eagle Materials ( EXP ) is up 6% at around $46, coming off a day's high of $46.83 after the company said it has commenced an underwritten public offering of 3 mln shares of its common stock. Shares were down 3% in pre-open.

The company will use the net proceeds from the offering, together with borrowings under its bank credit facility, to fund its acquisition of certain assets from Lafarge North America Inc. and certain of its subsidiaries.

EXP will acquire Lafarge's Sugar Creek, Missouri and Tulsa, Oklahoma cement plants, as well as six distribution terminals, two aggregates quarries, eight ready-mix concrete plants and a fly ash business.

The company also entered into a transition sales agreement to supply certain Lafarge operations with cement for four to five years, and an agreement with a Lafarge affiliate to supply low-cost alternative fuels to the acquired operations.

EXP is trading in a 52-week range of $15.87 - $48.10.

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This article appears in: Investing Commodities
Referenced Stocks: EXP

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