Ergon to Purchase SemGroup's Asphalt Business in Mexico

Mon., Jan 8, 2018 | Ergon

JACKSON, Miss. - Ergon Asfaltos México HC, LLC, and Ergon México HC, LLC, both subsidiaries of Ergon Asphalt & Emulsions, Inc., (EA&E) announce finalization of an agreement to purchase the asphalt business of SemMaterials México. This agreement includes the purchase of membership interests of the following entities from SemMaterials, L.P., and SemMéxico, LLC:

  • SemMéxico Materials HC s. de R.L. de C.V.
  • SemMaterials HC México S. de R.L. de C.V.
  • SemMaterials México S. de R.L. de C.V.
  • SemMaterials SC México S. de R.L. de C.V.

EA&E has long been known as a valued resource in the development of the asphalt industry in the United States. The company's footprint has grown from coast to coast over the past 36 years, and EA&E currently operates 47 asphalt and emulsions locations across the country.

"As we evaluated the possibility of further expanding our market presence through the SemMéxico business, the similarities between the two companies were immediately evident," said Patrick Nation, EA&E Senior Vice President − Sales & Marketing. "We believe the synergy between Ergon Asfaltos México and Ergon Asphalt & Emulsions will create a tremendous resource for customers in both countries, offering immediate and long-term benefits."

Headquartered in Puebla, Mexico, SemMaterials México was purchased from Koch Pavement Solutions by SemGroup in 2005. With 14 plants situated from the Baja California Peninsula to the Yucatan Peninsula and two national laboratories, it is the largest supplier of liquid asphalt cement products and product application services in the country.

"Timing can be everything, and this acquisition was no exception," commented Baxter Burns, President of EA&E. "We always believed that this would be a great opportunity for us to expand what we do every day into Mexico, but what really set this apart was the team SemMéxico had assembled. From the leadership in Puebla to everyone we met in the facilities, they solidified our belief that this would be a great fit for Ergon Asphalt & Emulsions. We look forward to the opportunity to support the new Ergon Asfaltos México and to take it to the next level."

Both companies provide neat asphalt, polymer modified asphalt and emulsions. They are also recognized for technological expertise and laboratory services. Each enjoys a strong company culture and places great importance on employees, technology, quality products and safety. Ergon plans to retain the current employees in the Mexico facilities, including the existing management team.

The SemMaterials México sale is expected to close early in the second quarter of 2018, subject to the receipt of certain governmental approvals and the satisfaction of other customary closing conditions.

About Ergon Asphalt & Emulsions, Inc.

Ergon Asphalt & Emulsions, Inc., is a subsidiary of Ergon, Inc., a privately held company formed in 1954 and based in Jackson, Mississippi, with over 2,500 employees globally. Ergon and its subsidiaries are engaged in a wide range of operations that are categorized into six primary business segments which include: Refining & Marketing, Asphalt & Emulsions, Transportation & Terminalling, Oil & Gas, Real Estate and Corporate & Other.

About SemGroup

Based in Tulsa, Okla., SemGroup® Corporation (NYSE:SEMG) is a publicly traded midstream service company providing the energy industry the means to move products from the wellhead to the wholesale marketplace. SemGroup provides diversified services for end-users and consumers of crude oil, natural gas, natural gas liquids, refined products, residual fuel oil and asphalt. Services include purchasing, selling, processing, transporting, terminalling and storing energy.


Kathy Potts
Director of Marketing Communications
Ergon, Inc.
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