Building materials provider Titan’s American subsidiary has entered into an agreement to acquire Keystone Cement Company, a Pennsylvania-based cement manufacturer and aggregates producer.
The transaction includes modern and high-quality assets such as an integrated cement plant, operating one of the most efficient cement kilns in Pennsylvania’s Lehigh Valley, with a clinker production capacity of 990,000 short tons per year.
Thanks to its attractive location, the plant is well-positioned to serve a 6.2 million short ton per year addressable market across Pennsylvania, Maryland, Delaware, and Ohio, with strong exposure to large-scale infrastructure and technology investments and extensive transportation modernization programs.
Greece-headquartered Titan says the acquisition is expected to accelerate top-line growth, enhance geographic diversification and improve operating margins through the realization of integration synergies, including substantial operational and commercial benefits from integration with the existing assets – Essex Cement in New Jersey and Roanoke Cement in Virginia – as well as Titan America’s fly ash processing and marketing facilities operated with Separation Technologies, a Titan subsidiary across Pennsylvania and Ohio.
The transaction price (subject to ordinary post-closing adjustments) is US$310m which corresponds to approximately US$313 per short ton of current clinker production capacity and its closing is subject to regulatory approval and other customary conditions.
Bill Zarkalis, president & CEO of Titan America, commented: “The strategic investment aligns perfectly with Titan America’s long-term growth strategy in the economic mega-regions along the East Coast of the US and enables Titan America to strengthen further its existing core materials business in the Mid-Atlantic region while adding complementary capacity in high-growth regions. It also demonstrates our disciplined M&A strategy – acquiring assets where our operational capabilities, commercial network, and financial strength can create substantial shareholder value.”
Marcel Cobuz, chair of the group executive committee, commented: “This acquisition in the US is consistent with the Titan Forward 2029 Strategic Priorities, focusing on expanding cement capacity and accelerating inorganic growth in heavy materials, including alternative cementitious materials. It also complements the recent active Group portfolio management moves across our key markets towards the acquisitions of an integrated cement plant
in the Greater Istanbul Market with US export potential, a cement grinding plant in France, aggregates bolt-ons in Greece, a precast Joint Venture business in the Western Balkans, along with investment partnerships in pozzolan in Greece and Türkiye as well as in fly ash facilities in the UK and in India.”
