US subsidiary of HeidelbergCement finalizes acquisition of CEMEX’s Pacific Northwest Materials Business
CADMAN Materials Inc., part of Lehigh Hanson Inc., the US subsidiary of HeidelbergCement, have finalized the acquisition of CEMEX’s Pacific Northwest Materials Business for approximately US$150 million.
In 2016 the Pacific Northwest Materials Business, which consists of seven aggregate quarries, five ready-mixed concrete plants and three asphalt operations in Oregon and Washington, generated approximately US$110 million in revenues and around US$14 million of EBITDA.
The acquired aggregates reserves and resources amount to approximately 110 million tons.
Lehigh Hanson, who plan to fully integrate all the operations into their current network, are targeting annual synergies of about US$7.5 million.
‘The acquisition strengthens our vertically integrated market position in the states of Washington and Oregon, improving our ability to move our products to customers in these attractive growth markets,’ explained Dr Bernd Scheifele (pictured), chairman of the managing board of HeidelbergCement.
‘This is part of our strategy of disciplined growth and increasing shareholder returns, and we are expecting significant synergies.’
CEMEX say the proceeds obtained from the transaction will be used mainly for debt reduction and for general corporate purposes.