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HeidelbergCement to sell North American and UK building products businesses

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World Cement,


HeidelbergCement has entered into a definitive agreement with an American affiliate of Lone Star Funds to sell its North American (excluding Western Canada) and United Kingdom building products business for an aggregate purchase price of US$1.4 billion, of which up to US$100 million will be payable in 2016, depending on the performance of the business in 2015. The closing is subject to the satisfaction of customary closing conditions.  The transaction is expected to close in the first quarter of 2015. 

The sale of Hanson Building Products is consistent with HeidelbergCement’s strategy of focusing on processing and refining raw materials for its 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. 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,” said Dr. Bernd Scheifele, CEO of HeidelbergCement. “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. I am very pleased with our financial discipline in 2014 and we will do our utmost to continue to create value for our shareholders in 2015.” 

In 2013 revenues totalled approximately US$1.1 billion and adjusted pro-forma EBITDA reached US$90 million. 


Adapted from press release by

Read the article online at: https://www.worldcement.com/the-americas/02012015/heidelbergcement-to-sell-north-american-and-uk-building-products-businesses-68/


 

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