Texas Industries working with Citigroup on possible exit
American construction material supplier Texas Industries Inc. (TXI) is reportedly exploring a sale of the company. TXI is said to be working with global bank Citigroup Inc. to find a buyer.
Reuters, citing an earlier report by Bloomberg, said that TXI may draw interest from US competitor Vulcan Materials Co. and Switzerland's Holcim Ltd. TXI has a market valuation of $1.67 billion.
Southeastern Asset Management and NNS Holding have been looking to exit their stakes in TXI for some time, but may struggle to get a sufficient price. Southeastern and NNS Holding are the company's largest shareholders, the report said.
Based on Thomson Reuters data, money management firm Southeastern had a 28% stake in TXI as of September 30. NNS Holding has a stake of about 23%. It is the investment vehicle for Egyptian billionaire Nassef Sawiris.
TXI has a total net sales of $697 million as of fiscal year 2013. The cement producer has a total of $1.6 billion assets under management during the same period, according to its 2013 annual report.