May 13 2015
Putney Capital Management, LLC announced the acquisition of one of the main terminals for the reception, storage and distribution of cement in Puerto Rico.
This strategic investment was made in partnership with Colombia's Cementos Argos, the fifth largest producer of cement in Latin America, and the second largest in the southeast of the United States with operations in Colombia, Central America, the US and the Caribbean. The terminal, acquired for total consideration of approx. $34.0 million, has a 250,000 metric ton/year capacity and approximately 20% market share in Puerto Rico.
"We are thrilled to partner with Cementos Argos," said Rafael Velez, Managing Partner of Putney. "Argos is an exceptional company, with a demonstrated track record of sustained operational excellence, financial strength and strong corporate governance. Putney looks forward to a long and successful partnership with Argos and will continue to explore joint opportunities in the future."
Jorge Mario Velasquez, CEO of Argos, added, "We are delighted to be partnering with Putney on this investment. With this transaction, we are entering a new market that is closely tied to the US economy, that currently consumes close to 650,000 tons of cement per year and whose growth prospects are being driven by the latent recovery and the new programs aimed at stimulating investment in Puerto Rico. The acquisition strengthens our position as leader in the region."
Cobaltum Partners acted as exclusive financial advisor to Putney. Foley & Lardner, OMG and Fiddler, Gonzalez & Rodriguez acted as legal advisors to Putney.