The FINANCIAL — In the context of optimising its asset structure, HeidelbergCement is selling property located at Lövholmen in Stockholm to enable residential development. The company currently operates a cement terminal on this property, which it plans to move to an industrial zone at Värtan in Stockholm. A sales contract has been signed between HeidelbergCement and a consortium of Järntorget Byggintressenter AB and Besqab AB. Both companies are active in the holding and development of real estate. The agreed minimum price of the property amounts to about €115 millon. The closing of the deal, which is subject to several conditions, including the adoption of development plans for both Lövholmen and Värtan land areas, is expected in late 2017 at the earliest, according to HEIDELBERGCEMENT AG.
“The disposal is part of our long-term strategy for value creation and realization from our significant worldwide real estate,” says Dr. Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement. “At the same time we contribute with our relocation to the development of the City of Stockholm.”
HeidelbergCement to sell its North American and UK Building Products Business
HeidelbergCement announces that it has entered into a definitive agreement with an American affiliate of Lone Star Funds to sell its North American (excluding Western Canada) and United Kingdom building products business (collectively, “Hanson Building Products”), for an aggregate purchase price of US$ 1.4 billion, of which up to $100 million will be payable in 2016, depending on the performance of the business in 2015. The closing is subject to the satisfaction of customary closing conditions. HeidelbergCement expects the transaction to close in the first quarter of 2015, according to HEIDELBERGCEMENT AG.
The sale of Hanson Building Products is consistent with HeidelbergCement’s strategy of focusing on processing and refining raw materials for its core products of cement and aggregates and further downstream activities.
HeidelbergCement will use the transaction proceeds to reduce its financial debts.
HeidelbergCement to sell its North American and UK Building Products Business
HeidelbergCement announces that it has entered into a definitive agreement with an American affiliate of Lone Star Funds to sell its North American (excluding Western Canada) and United Kingdom building products business (collectively “Hanson Building Products”), for an aggregate purchase price of US$ 1.4 billion, of which up to $100 million will be payable in 2016, depending on the performance of the business in 2015. The closing is subject to the satisfaction of customary closing conditions. HeidelbergCement expects the transaction to close in the first quarter of 2015, according to HEIDELBERGCEMENT AG.
The sale of Hanson Building Products is consistent with HeidelbergCement’s strategy of focusing on processing and refining raw materials for its core products of cement and aggregates and further downstream activities. Deutsche Bank AG, BNP Paribas and Bank of America Merrill Lynch acted as financial advisors and Shearman & Sterling LLP acted as legal advisor to HeidelbergCement for the transaction. For Lone Star Funds, Citi, Credit Suisse, and Barclays acted as financial advisors with Gibson, Dunn & Crutcher acting as legal advisor.
“Hanson Building Products is a multinational business with leading market positions, but the focus of its product portfolio on bricks, pressure and gravity pipes and precast is outside the core businesses of HeidelbergCement. We are pleased that Lone Star will acquire this business which as an experienced financial investor will support the sustainable development of the business going forward,” said Dr. Bernd Scheifele, CEO of HeidelbergCement. “We will use the proceeds to accelerate our debt pay down. This is an important step towards reaching our target financial metrics that are relevant for improving our credit-worthiness. I am very pleased with our financial discipline in 2014 and we will do our utmost to continue to create value for our shareholders in 2015,” he added.
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