Heidelberg Materials strengthens its presence in the US with three acquisitions

Heidelberg Materials announces it will acquire Highway Materials, Inc., one of the largest independent producers of aggregates and asphalt in the Greater Philadelphia market; businesses include crushed stone, hot mix asphalt, clean fill, construction services, and concrete recycling.
Earlier this month, Heidelberg Materials expanded its presence in Texas with the acquisition of Victory Rock, a producer of high-quality aggregates, and Aaron Materials, an established materials producer and concrete recycler.
These acquisitions complement the company’s existing presence in two major U.S. markets while strengthening its commitment to recycling.

Heidelberg Materials announced today that it has entered into a definitive purchase agreement to acquire Highway Materials, Inc., one of the largest independent producers of aggregates and asphalt in the Greater Philadelphia market. The acquisition includes four crushed stone quarries, nine hot mix asphalt plants, two clean fill operations, a concrete recycling facility, a construction services company and more than 350 employees.

Earlier this month, Heidelberg Materials successfully acquired two companies in Texas: Victory Rock, a producer of high-quality concrete and asphalt aggregates and other related products with two well-located quarries, and Aaron Materials, a well-established concrete recycling and materials company with operations spanning concrete crushing, stabilized materials and bulk concrete production.

“These latest acquisitions in the U.S. reflect progress in our ongoing efforts to optimize our portfolio by expanding our presence in this key region,” said Dr. Dominik von Achten, Chairman of the Board. “We will continue our growth trajectory in our key markets around the world while achieving the industry’s most ambitious sustainability goals.”

“We are excited to continue to expand our business in two of the fastest-growing areas in the U.S.,” said Chris Ward, president and CEO of Heidelberg Materials North America. “The addition of these operations complements our existing aggregates businesses in Texas and Pennsylvania, and expands our rapidly growing portfolio of circular solutions across North America.”

With these three acquisitions, Heidelberg Materials is fulfilling its ambition to acquire smaller and mid-sized bolt-on assets to expand its existing presence in key growth markets. This also allows for significant synergies from joint management and shared resources in the future. The total purchase price of the transaction is approximately USD 380 million, with a total expected EBITDA after synergies of approximately USD 50 million.

Heidelberg Materials is firmly committed to achieving net zero emissions and advancing the circular economy in North America. The company recently announced the successful conversion of its cement plant in Speed, Indiana, to a slag mill to better support the increased demand for sustainable products in the Midwest market.

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Read the article online at: https://www.worldcement.com/the-americas/17072024/heidelberg-materials-further-strengthens-us-footprint-with-three-acquisitions/