NEW YORK, NY, May 3, 2006 – The international law firm Milbank, Tweed, Hadley & McCloy LLP, led by partners Roland Hlawaty and Michael Fitzgerald, represented Mexican cement company Grupo Cementos de Chihuahua, S.A. de C.V. (“GCC”) in connection with its $271 million acquisition of Mid‑Continent Concrete Company (“MidCo”) of the United States. The stock purchase, which closed on May 1, 2006, is being financed by debt.
Mr. Hlawaty noted, “This is a milestone for Grupo Cementos de Chihuahua’s ongoing strategic acquisition of US based cement companies. Cementos has one of the largest and most modern cement manufacturing facilities in Mexico on the border with El Paso and, as a result of recent favorable relaxations in anti-dumping tariffs and with the strong price of cement, has been looking for continued US expansion.”
Mr. Fitzgerald commented, “In structuring and closing the transaction, the Milbank team was able to draw on our history and experience working with Mexican companies in acquisitions and financings as well as our global corporate and M&A capabilities. Consequently we were ideally positioned to facilitate and effectively coordinate both the acquisition and financing components of the transaction, allowing GCC to expand its US footprint in a new region complimentary to its existing business.”
The Milbank team representing GCC included partners Roland Hlawaty and Michael Fitzgerald and associate Gregory Rutstein, all in the firm’s New York office.
The third largest cement company in Mexico, Grupo Cementos de Chihuahua S.A. de C.V. (“GCC”) is 49% owned by Cemex, one of the world’s largest cement manufacturing companies. MidCo will be operated as a wholly owned unit of GCC, which has facilities in Mexico, Bolivia and the United States. MidCo, one of the largest concrete manufacturing companies in Oklahoma and Arkansas, owns and operates 30 ready-mix concrete plants and a fleet of 250 mixer trucks. GCC’s third purchase of a US company in recent years, MidCo is expected to generate sales of $138 million this year and immediately contribute to earnings, and significantly expand GCC’s market share in the United States.
Milbank, Tweed, Hadley & McCloy LLP is a preeminent global law firm that is recognized for more than 140 years for providing innovative legal solutions in many of the world’s largest, most complex, “first-ever” corporate transactions, including capital markets, corporate finance, project finance, acquisition finance and other major fields of law practice. Milbank clients range from prominent multinational financial, industrial and commercial enterprises to governments, institutions and individuals. The firm is headquartered in New York, with offices in Los Angeles, Washington, DC, London, Frankfurt, Munich, Tokyo, Hong Kong and Singapore.