(By Balaseshan) Ready-mixed concrete producer US Concrete Inc. (NASDAQ:USCR) said it has agreed to sell substantially all of its California pre-cast operations to Oldcastle Precast Inc. for $21.25 million in cash plus the final net working capital adjustments.
The proceeds will provide US Concrete the opportunity to increase cash deployed for earning enhancing activities such as acquisitions, organic growth opportunities and debt repayment.
The company said its California pre-cast operations consist of Central Precast Concrete Inc., San Diego Precast Concrete Inc. and Sierra Precast Inc., which are also parties to the definitive sales agreement.
The assets to be purchased by Oldcastle Precast pursuant to the Asset Purchase Agreement include certain facilities, fixed assets, inventory, assumed contracts, regulatory approvals, materials, records and intellectual property in each case, related to the Company's California pre-cast operations.
Oldcastle Precast will also assume certain liabilities and obligations of US Concrete arising out of or related to the assumed contracts and the company's California pre-cast operations.
This transaction is subject to customary closing conditions and is expected to close during the third quarter of 2012.
The stock, which has been trading between $1.90 and $8.28 for the past 52 weeks, remains unchanged from Thursday's close of $5.66.