Eagle Materials grants reciprocal put options to buy 50% JV stake at $1.1B

EAGLE MATERIALS INC

Put options exercisable for 15 months if either partner signs a $1B+ cement/slag asset purchase outside JV.
Purchase price for 50% interest is $1.1 billion, subject to working capital and debt adjustments.
JV Texas Lehigh manufactures grey cement in Buda, Texas; current partners are Eagle (50%) and Heidelberg Materials (50%).
No party is currently negotiating an Outside Purchase Agreement; options provide an additional exit mechanism.
If triggered, sale closes concurrently with the outside acquisition under a pre-agreed Interest Purchase Agreement.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

EAGLE MATERIALS INC entered into Put Option Agreement with HM Southeast Cement LLC and Heidelberg Materials US, Inc. valued at $1,100,000,000.00 (effective 2024-05-01).

Action: entry
Agreement: collaboration
Counterparty: HM Southeast Cement LLC and Heidelberg Materials US, Inc.
Value: $1,100,000,000.00
Effective: 2024-05-01

Exact text from the filing

On May 1, 2024, the Company and the TLCC Partners, on the one hand, and HM and HMSC, on the other hand, entered into a Put Option Agreement (the “ Put Option Agreement ”) that provides for the grant of reciprocal put options by the parties with respect to their 50% partnership interests in the Joint Venture.

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Source: SEC EDGAR

accession 0001193125-24-130864

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