Heidelberg Materials Expands US Business with Acquisitions

Building materials company Heidelberg Materials is strengthening its U.S. operations by acquiring three companies for a total of $380 million.

The latest acquisition announced Tuesday by the DAX-listed company is Philadelphia-based aggregate and asphalt producer Highway Materials. The synergies are expected to generate operating profits of about $50 million. The company, which has more than 350 employees and four gravel plants, asphalt mixing plants and recycling plants, is a leading supplier in the region. Heidelberg Materials is also buying aggregate producer Victory Rock and construction materials producer Aaron Materials, both of which are based in the U.S. state of Texas.

The acquisitions will optimize the portfolio in the core market and expand the range of recycling products, Heidelberg Materials explained. Three years ago, the Kurpfalz-based company reduced its U.S. operations by selling its cement plants in the western United States for $2.3 billion.

(Reporting by Ilona Wissenbach. Editing by Olaf Brenner. For questions, please contact the editorial team at [email protected])