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Home Business

HeidelbergCement to broaden its vertical integration in northwestern USA

by The FINANCIAL
April 18, 2017
in Business
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HeidelbergCement Partially Adapts Outlook for 2018
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The FINANCIAL — On March 18, HeidelbergCement announced that its U.S. subsidiary Cadman Materials, Inc. , a LehighHanson company, has entered into an agreement with a U.S. subsidiary of CEMEX, S.A.B. de C.V. (Cemex) to buy Cemex’s Pacific Northwest Materials Business consisting of aggregate, asphalt and ready mix concrete operations in Oregon and Washington.

The purchase price for the assets amounts to about USD 150 million. Closing of the transaction, which is subject to final approval by regulators, is expected during the second quarter of 2017 or soon thereafter, according to HeidelbergCement.

“The operations are an ideal strategic fit in order to broaden our vertically integrated market position in the states of Washington and Oregon” explains Dr. Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement. “This is a bolt-on acquisition with low risks and we are expecting significant synergies. It is part of our strategy of disciplined growth and increasing shareholder returns.”

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Cemex’s Pacific Northwest Materials Business includes 7 aggregate quarries, 5 ready mix concrete plants and 2 asphalt operations employing about 350 employees. LehighHanson  will fully integrate all the operations into its current network thereby  broadening its position in the Pacific Northwest area.

 

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