HeidelbergCement’s US subsidiary Cadman Materials, part of Lehigh Hanson, has finalized the purchase of Cemex’s Pacific Northwest Materials Business.
Pacific Northwest Materials consists of aggregate, asphalt and ready mixed concrete operations in Oregon and Washington.
The purchase price was $150 million.
“The acquisition strengthens our vertically integrated market position in the states of Washington and Oregon” says Bernd Scheifele, chairman, HeidelbergCement.
“This improves our ability to move our products to customers in these attractive growth markets. The acquisition is part of our strategy of disciplined growth and increasing shareholder returns and we are expecting significant synergies.”
Cemex’s Pacific Northwest Materials Business includes 7 aggregate quarries, 5 ready mix concrete plants and 3 asphalt operations and generated about $110 million revenues and about $14 million of Ebitda in 2016 with about 350 employees.
The acquired aggregates reserves and resources amount to about 110 million tons. Lehigh Hanson will fully integrate all the operations into its current network and targets annual synergies of about $7.5 million.