Eagle Materials Inc. (NYSE: EXP) announced early Monday that it had entered into a definitive agreement to acquire Cemex’s Fairborn Ohio cement plant, and related assets. As a result shares saw a handy gain following the announcement.

Apart from the cement plant in Ohio, the related assets include a distribution terminal in Columbus, Ohio, and a cement bagging operation. The cement plant has the production capacity to grind nearly a million tons of clinker annually.

Eagle Materials is paying $400 million for the plant and assets, but this deal is still subject to customary closing conditions.

At the same time, the company expects to have certain tax benefits arising from the transaction, the net present value of which is expected to be roughly $50 million. The transaction is expected to close in the fourth quarter of 2016.

Calendar 2016 revenue and EBITDA for the acquired assets is estimated to be $79 million and $33 million, respectively. The acquisition will increase Eagle’s U.S. cement capacity by roughly 20% and is expected to be accretive to earnings immediately post-closing.

Dave Powers, president and CEO of Eagle Materials, commented on the agreement:

Our strategy has been to grow the cement side of our business. The Fairborn plant extends our US cement system and connects but does not overlap with the market reach of our existing plants. This high-quality cement plant is a compelling fit with our strategic objectives and our criteria for new investment. These assets will allow us to participate more fully in the US construction industry and further positions the company in target US heartland growth markets.

Shares of Eagle Materials were last trading up nearly 4% at $77.43 on Monday, with a consensus analyst price target of $87.81 and a 52-week trading range of $45.03 to $87.57.

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