SOURCE: Quarry Magazine | December 16, 2024
Heidelberg Materials North America is set to acquire Giant Cement Holding Inc. (GCHI) and its subsidiaries in a multi-million-dollar deal.
Under the terms of the definitive agreement, Heidelberg Materials North America will acquire GCHI and its subsidiaries Giant Cement Company, Dragon Products Company, and Giant Resource Recovery from the Fortaleza, Uniland and Trituradora groups.
“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.”
This transaction includes an integrated cement plant in South Carolina, four cement distribution terminals in Georgia and South Carolina, a joint venture deep-water import terminal in Georgia. Additionally, it includes assets in New England with cement and slag distribution terminal in New Hampshire and a a deep-water import terminal in Boston.
The deal also includes Giant Resource Recovery, an alternative fuel recycling business with four strategically located facilities in the Eastern US.
“The acquisition of the GCHI assets will further strengthen our cementitious footprint in the growing Southeastern US and New England markets,” said Chris Ward, president and chief executive officer of Heidelberg Materials North America and member of the managing board of Heidelberg Materials.
“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 deal is expected to be completed in the first quarter of 2025.
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