As part of its portfolio optimisation and margin improvement programme in its North American business, HeidelbergCement has signed an agreement to sell its business activities in the U.S. West region to the U.S. based company Martin Marietta Materials, Inc. The sale price is US$2.3 billion in cash.
“The sale of our U.S. West region activities is a major step in our portfolio optimisation as part of our ‘Beyond 2020’ strategy,” said Dr. Dominik von Achten, Chairman of the Managing Board of HeidelbergCement. “We are simplifying our portfolio in North America and prioritising the strongest market positions. Our engagement for the North American market is stronger than ever.” Chris Ward, President & CEO of Lehigh Hanson, Inc. reiterated HeidelbergCement’s high commitment for future growth in North America by saying: “We will accelerate the build-out of our positions in the four key regions Canada, Midwest, Northeast and South through selected bolt-on acquisitions and capacity expansion projects in the future.”
The transaction comprises the sale of Lehigh Hanson’s business activities in cement, aggregates, ready-mixed concrete, and asphalt in the U.S. West region (California, Arizona, Oregon, and Nevada), except for the Permanente cement plant and quarry. The sale includes two cement production plants with related distribution terminals, 17 active aggregates sites, and several downstream operations.
Chris Ward said: “We appreciate the dedication, commitment and hard work of our West Region employees and are thankful for their contribution to our success over the years. We wish them well under the new ownership.”
Closing of the transaction is expected in the second half of 2021 pending regulatory approvals. Lehigh Hanson will maintain ownership and management of these assets until that time.
Read the article online at: https://www.worldcement.com/the-americas/24052021/heidelbergcement-sells-its-us-west-region-business/