North American lime specialist Graymont has entered into an agreement with Holcim New Zealand and New Zealand Steel Limited to acquire their shares in McDonald’s Lime, and a formed a further agreement with Holcim to purchase its Taylor’s Lime assets.
McDonald’s Lime and Taylor’s Lime supply limestone and lime products to agribusinesses, resource companies and manufacturers in New Zealand. McDonald’s Lime is based in the Waikato/King Country region, while Taylor’s Lime operates in the Otago region, north of Dunedin.
The transaction is expected to be completed in 2015, subject to regulatory approvals. Under both agreements, Graymont will retain all employees on their current terms and conditions.
Graymont currently operates facilities in the US and Canada, and also has a significant investment in Mexico’s Grupo Calidra. The planned acquisitions represent the group’s confidence in New Zealand’s growth prospects.
Holcim is progressing towards an imported cement model in New Zealand. In line with this, it is investing $100 million in two import terminals in the country, one in Auckland and one in Timaru.
“We look forward to welcoming the employees of McDonald’s and Taylor’s to Graymont,” said Graymont President and Chief Executive Officer, Stéphane Godin. “Together we will continue to reliably deliver quality products and services to our customers and realise our world class vision built on a strong safety culture, commitment to improving environmental performance, and engagement with the communities in which we operate.”
“This is also good news for the New Zealand economy with a world class business investing in these operations and entering this market for the first time,” added Holcim New Zealand’s Managing Director Jeremy Smith.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/the-americas/15122014/graymont-to-purchase-lime-assets-in-new-zealand-16/