Hanson to acquire US aggregates producer
"HANSON plc are to acquire Better Materials Corp. from Better Materials & Aggregates Co. for $152.0 million (£96.8 million) in cash, plus the assumption of approximately $3.0 million of debt. Completion of the deal, which is subject to final due diligence and regulatory approval, is expected to occur by the end of July."
"Established in 1959 and headquarterd in Penns Park, Pennsylvania, Better Materials Corp. are producers of construction materials in both western Pennsylvania and eastern Pennsylvania/southern New Jersey, including the greater metropolitan areas of Philadelphia, Pittsburgh, Trenton and Atlantic City. They operate six crushed-stone quarries, five sand and gravel quarries, seven asphalt plants and have over 300 employees."
"Better Materials, who have permitted reserves totalling around 390 million tonnes located mainly on land owned by the company, will be integrated into Hanson’s Northeast aggregates region which operates in Pennsylvania and New York State. Pennsylvania is the fourth-largest aggregates market in the US and Hanson currently operate 22 quarries and three asphalt plants in the State."
The acquisition will also provide Hanson with a presence in New Jersey. The southern New Jersey region combined with the south-eastern Pennsylvania region is the sixth-largest aggregates market in the US.
"For the year ended 31 December 2002, Better Materials Corp. shipped 9.4 million tons of aggregates and 1.8 million tons of asphalt, achieving an unaudited sales revenue of $115.3 million (£73.4 million) and EBITDA of $21.1 million (£13.4 million)."
"Commenting on the acquisition, Ward Nye, president of Hanson Aggregates East, said: ‘Better Materials are an excellent bolt-on acquisition. They come with good assets in States which are major consumers of aggregates and which have strong population growth forecasts.’"
"Alan Murray, chief executive of Hanson plc, added that the acquisition was consistent with Hanson’s bolt-on acquisition strategy and the company’s objective of developing aggregates operations, particularly in the US. ‘We will continue to seek further such opportunities for growth,’ he said."
