Heidelberg Cement’s US subsidiary Cadman Materials, a part of Lehigh Hanson, has finalised the acquisition of Cemex’s Pacific Northwest Materials Business consisting of aggregate, asphalt and ready mixed concrete operations in Oregon and Washington for a purchase price of about US$150 million (€.131.5 million).
HeidelbergCement’s US subsidiary Cadman Materials, a part of Lehigh Hanson, has finalised the acquisition of Cemex’s Pacific Northwest materials business consisting of aggregate, asphalt and ready mixed concrete operations in Oregon and Washington for a purchase price of about US$150 million (€.131.5 million).
“The acquisition strengthens our vertically integrated market position in the states of Washington and Oregon,” says Dr Bernd Scheifele, Chairman of the Managing Board of HeidelbergCement.
“This improves our ability to move our products to customers in these attractive growth markets. The acquisition is part of our strategy of disciplined growth and increasing shareholder returns and we are expecting significant synergies.”
Cemex’s Pacific Northwest Materials Business includes seven aggregate quarries; five ready mix concrete plants, and three asphalt operations and generated about US$110 million (€96.5 million) revenues and about US$14 million (over €12millon) of EBITDA in 2016 with about 350 employees.
The acquired aggregates reserves and resources amount to about 110 million tons.]
Lehigh Hanson will fully integrate all the operations into its current network and targets annual synergies of about US$7.5 million (€6.6 million).
Cemex says that the proceeds obtained from this transaction will be used mainly for debt reduction and for general corporate purposes.
Bank of America Merrill Lynch and Citigroup Global Markets acted as financial advisors to Cemex in this transaction.
