Mexican Cement Giant Cemex Acquires U.S. Stucco Company in Building Materials Expansion

Cemex, Mexico's major cement producer, announced its acquisition of Omega Products International, a U.S.-based stucco manufacturer with operations in the western states. The deal, valued at under $161 million, is part of Cemex's strategy to expand its building materials offerings in the American market.

MEXICO CITY – Mexican cement producer Cemex announced Thursday its acquisition of Omega Products International, an American stucco manufacturing company, as the firm continues expanding its building materials portfolio in the United States market.

Omega operates as a private company with four manufacturing locations across the western United States and produces approximately $23 million annually in core earnings, according to Cemex’s announcement. The cement giant did not reveal the specific acquisition cost.

Company officials anticipate finalizing the transaction during the first quarter of this year.

“This purchase aligns with our U.S. growth strategy,” stated CEO Jaime Muguiro, explaining that the acquisition enhances Cemex’s existing business since Omega’s manufacturing facilities and client base are located in many western states where the Mexican company already distributes cement, aggregates and additives.

Muguiro took over leadership last year with plans to streamline operations at the global cement manufacturing giant. His strategy involves eliminating inefficient elements and reducing workforce in non-essential business areas while focusing resources on American market expansion.

Following cost reductions, Cemex projects Omega’s total value will remain below seven times its core earnings measured by EBITDA. With Omega’s annual EBITDA at $23 million, this calculation suggests an enterprise value below $161 million.

Last October, Cemex increased its ownership to a controlling interest in Couch Aggregates, a southeastern U.S. company that manufactures sand, gravel and crushed stone materials.