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Titan to buy Tarmac
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August 28, 2000: 3:55 p.m. ET
Greek cement company to buy Tarmac America for $636 million in stock
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NEW YORK (CNNfn) - Greece's Titan Cement SA announced Monday it agreed to purchase cement company Tarmac America for $636 million in an all-stock deal.
Tarmac America, based in Norfolk, Va., is a leading supplier of cement and concrete products with resources throughout the Eastern region of the United States. The company is owned by Anglo American (AAUK: Research, Estimates), which is a London-based conglomerate that holds interests in steel, gold, building materials, textiles and financial services.
Titan, based in Athens, Greece, makes and sells cement and building materials in Greece and abroad and has a production capacity of more than 11 million tons.
Titan said it is aiming to increase its presence in the U.S. market, because it anticipates a drop in domestic demand following the 2004 Olympic Games in Greece. U.S. demand has been at high levels, although profit margins have proven to be lower than those from the Greek market, the company said.
As part of the deal, Titan will sell part of Tarmac's assets to Vulcan Materials (VMC: Research, Estimates), a Birmingham, Ala.-based maker of crushed stone, gravel and industrial chemicals, for $227 million in stock. The asset deal includes Tarmac's eight quarries and three sand and gravel operations outside of Florida, as well as distribution facilities in Pennsylvania, Virginia, South Carolina and Maryland.
 The deal is contingent upon regulatory approval, which is expected to take up to two months.
Construction analyst George Karousso told Reuters: "For the company's expansion plans, the acquisition is a very positive strategic move. With the buyout of such a big company as Tarmac, Titan is receiving a significant boost in an important market like the U.S."
Titan's (TTN: Research, Estimates) stock fell 1.88 to 22.12 in afternoon trading. 
--from staff and wire reports
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