(DALLAS) — Texas Industries, Inc. TXI +1.29% announced today that on March 22, 2013, its subsidiaries finalized the exchange of its expanded shale and clay aggregates manufacturing business for the ready-mix concrete and aggregate distribution businesses of subsidiaries of Trinity Industries, Inc. in east Texas and southwest Arkansas.
As a result of the transaction, Texas Industries has transferred its expanded shale and clay manufacturing facilities in Streetman, Texas; Boulder, Colorado and Frazier Park, California; its DiamondPro(R) product line; and related assets and consideration in exchange for 42 ready-mix concrete plants stretching from Texarkana to Beaumont in east Texas and southwestern Arkansas, two aggregate distribution facilities in Beaumont and Port Arthur, Texas, $8.5 million in cash and related assets and consideration.
“This transaction continues and significantly enhances our vertical integration strategy. It also provides an opportunity to service historically strong and growing local markets from Beaumont to Southern Arkansas. The timing fits well with our upstream cement capacity additions in Central Texas,” stated Jamie Rogers, TXI’s Vice President and Chief Operating Officer.
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.