The FINANCIAL — On January 31, HeidelbergCement announced that its Australian subsidiary Hanson Holdings Australia Pty Limited (Hanson Australia) had acquired Alex Fraser Group, one of the leading providers of recycled construction materials and asphalt in Australia, from Swire Investments (Australia) Ltd.
The purchase price for the assets amounts to about €135 million, according to HeidelbergCement.
“The acquisition represents an important step for Hanson Australia and it further strengthens the market position in the urban centers of Melbourne and Brisbane,” explains Dr. Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement. “In particular it will provide Hanson Australia with expertise in asphalt and construction materials recycling that complements the existing business and can be leveraged for entry into other markets. It is fully in-line with our strategy of value creating acquisitions, and we are expecting significant synergies.”
Established in 1879, Alex Fraser has become Australia’s leading provider of recycled construction materials and operates three facilities in Melbourne and two in Brisbane. It also produces asphalt out of two plants in Melbourne. Alex Fraser is expected to generate €20 million of EBITDA in 2018 (including synergies of approximately €3 million). Alex Fraser will retain its brand and continue to operate as a stand-alone business.