Mexican cement giant Cemex SAB has sold its Canary Islands operations to Spain's Cimpor Inversiones SA for $226.8 million (euro162 million).

Cemex says about $7.14 million (euro5 million) of that will be held in escrow to cover any price adjustments.

The company says in a news release Monday that it received unspecified compensation for working capital.

Cimpor is a subsidiary of Cimpor Cimentos de Portugal SGPS SA.

Proceeds from the sale will be used to reduce debt for Cemex, which is hurting from the slowdown in the U.S. housing market.

The transaction included Cemex's cement and ready-mix assets, a 50 percent stake in Cementos Especiales de las Islas SA and Inprocoi, along with grinding mills and 19 plants.

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