Titan America SA announced it has entered into an agreement to acquire Keystone Cement Company, a Pennsylvania-based cement manufacturer and aggregates producer, expanding Titan’s footprint in the Mid-Atlantic and adding capacity in markets the company describes as benefiting from infrastructure, technology investment, and transportation modernization programs.
Under the terms of the deal, Titan America will buy Keystone from the Fortaleza, Uniland, and Tritadura groups for $310 million, subject to customary post-closing adjustments. The purchase price equates to about $313 per short ton of Keystone’s current clinker production capacity, and Titan said it expects to fund the transaction with a combination of cash on hand and financing. The transaction remains subject to regulatory approval and other customary closing conditions.
Keystone operates a cement plant in Pennsylvania’s Lehigh Valley with current clinker production capacity of 990,000 short tons per year, which Titan characterized as among the most efficient kilns in the state. Titan also said Keystone’s mineral assets are expected to support more than 50 years of cement production, while its aggregates business and dolomite reserves could support growth in DOT-qualified aggregates over time.
Titan said it expects the acquisition to generate operational and commercial synergies through integration with its existing Essex Cement and Roanoke Cement operations, as well as with its fly ash processing plants across Pennsylvania and Ohio. The company also highlighted Keystone’s existing alternative fuels infrastructure and permits as a platform to improve costs and reduce carbon intensity as utilization expands.
KEY QUOTE:
“The acquisition of Keystone Cement represents a compelling strategic opportunity that aligns perfectly with our long-term growth strategy in the economic mega regions along the east coast of our country. Keystone will bring high-quality assets, substantial limestone reserves, and an attractive position in geographies benefiting from strong demand for high performance construction materials and solutions. We see substantial value creation potential through capacity growth, operational improvements and integration with our Essex and Roanoke Cement operations. This transaction reflects our disciplined approach to M&A, targeting assets where we can use our operational expertise, commercial network, and robust balance sheet to drive meaningful value for our shareholders.”
Bill Zarkalis, President & CEO of Titan America
