SOURCE: Heidelberg Materials | November 29, 2024
Heidelberg Materials North America have entered into a definitive purchase agreement to acquire Giant Cement Holding Inc. (GCHI) and their subsidiaries Giant Cement Company, Dragon Products Company, and Giant Resource Recovery from the Fortaleza, Uniland, and Trituradora groups. GCHI are established cement producers on the US East Coast with a strong focus on using waste-derived fuels.
The transaction’s assets in the south-eastern US consist of an integrated cement plant with an annual capacity of 800,000 tonnes of cement in Harleyville, South Carolina, a network of four cement distribution terminals in Georgia and South Carolina, as well as a joint venture deep-water import terminal in Savannah, Georgia.
Assets in the New England area comprise a cement and slag distribution terminal in Newington, New Hampshire, and a deep-water import terminal in Boston, Massachusetts. Also included in the transaction is Giant Resource Recovery, an alternative fuel-recycling business with four strategically located facilities in the eastern US.
‘Our latest additions are yet another great strategic fit creating value in the near term through significant synergies with our existing assets on the East Coast. This move follows a series of key acquisitions this year that have already contributed to our consistently strong financial performance in North America,’ said Dr Dominik von Achten, chairman of the managing board of Heidelberg Materials. ‘At the same time, we are excited about taking further steps in building a sustainable future and positioning Heidelberg Materials as the front runner on the path to net zero and a circular economy in the key North American market.’
Chris Ward, president and chief executive officer of Heidelberg Materials North America and member of the managing board of Heidelberg Materials, added: ‘The acquisition of the GCHI assets will further strengthen our cementitious footprint in the growing south-eastern US and New England markets. We are excited to expand our supply network on the East Coast to better serve our broad customer base and we expect strong synergies with the Giant Resource Recovery fuel recycling business.’
The purchase price for the transaction is approximately US$600 million, subject to ordinary post- closing adjustments. The transaction is expected to be completed in the first quarter of 2025 and to contribute around US$60 million in EBITDA in the first year of operation before significant additional synergies.
The company’s latest addition follows three key US acquisitions in the third quarter of 2024. In August, the company acquired Highway Materials Inc., one of the largest independent aggregates and asphalt producers in the Greater Philadelphia market. The acquisition of Carver Sand & Gravel, the largest aggregates producer in the Albany area, New York, also followed in August. Moreover, Heidelberg Materials also acquired Victory Rock, producers of high-quality aggregates for concrete and asphalt as well as other related products.
To comment on this story or for additional details click on related button above
