Hanson Building Products to be sold for US$1.4 billion
HeidelbergCement to sell their North American and UK building products business
ON 24 December 2014, HeidelbergCement announced that they had entered into a definitive agreement with an American affiliate of Lone Star Funds to sell their UK and North American (excluding western Canada) building products business.
Up to US$100 million of the total purchase price of US$1.4 billion will be payable in 2016, depending on the performance of the business in 2015.
HeidelbergCement say the sale of Hanson Building Products is consistent with their strategy of focusing on processing and refining raw materials for their core products of cement and aggregates, and further downstream activities.
‘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,’ explained Dr Bernd Scheifele, chief executive officer 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.’
HeidelbergCement say the transaction is expected to close in the first quarter of 2015, subject to the satisfaction of customary closing conditions.
Mr Scheifele (pictured) continued: ‘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.’
In North America, Hanson Building Products are one of the leading manufacturers of concrete pressure and gravity pipes, as well as one of the largest brick producers.
In the UK, Hanson Building Products are one of the largest producers of clay bricks and also make Thermalite (aircrete) and aggregate blocks. The UK division also includes Hanson Formpave, Hanson Structherm, Hanson Floors and Precast, and Irvine Whitlock.
The Hanson Building Products business employs a staff of more than 4,600 and has a network of 107 manufacturing plants and 11 distribution facilities in the US, eastern Canada and the UK.
In 2013 revenues totalled approximately US$1.1 billion and adjusted pro-forma EBITDA reached US$90 million.
