As part of its portfolio optimization and margin improvement programme in its North American business, HeidelbergCement has signed an agreement to sell its business activities in the U.S. West region to the U.S. based company Martin Marietta Materials, Inc. The sale price is USD 2.3 billion in cash.
- Sale of Lehigh Hanson’s business activities in the U.S. West region to Martin Marietta Materials, Inc. for USD 2.3 billion
- With the transaction, HeidelbergCement is successfully driving forward its portfolio optimization as part of the “Beyond 2020” strategy
- North America remains a core focus market for HeidelbergCement: the target is to further strengthen its position in the four North American regions Canada, Midwest, Northeast and South through selected bolt-on acquisitions and capacity expansion projects
“The sale of our U.S. West region activities is a major step in our portfolio optimization as part of our ‘Beyond 2020’ strategy,” said Dr. Dominik von Achten, Chairman of the Managing Board of HeidelbergCement. “We are simplifying our portfolio in North America and prioritising on the strongest market positions. Our engagement for the North American market is stronger than ever.” Chris Ward, President & CEO of Lehigh Hanson, Inc. reiterated Heidelberg Cement’s high commitment for future growth in North America by saying: “We will accelerate the build-out of our positions in the four key regions Canada, Midwest, Northeast and South through selected bolt-on acquitisions and capacity expansion projects in the future.”
The transaction comprises the sale of Lehigh Hanson’s business activities in cement, aggregates, ready-mixed concrete, and asphalt in the U.S. West region (California, Arizona, Oregon, and Nevada), except for the Permanente cement plant and quarry. The sale includes two cement production plants with related distribution terminals, 17 active aggregates sites, and several downstream operations.
Chris Ward said: “We appreciate the dedication, commitment and hard work of our West Region employees and are thankful for their contribution to our success over the years. We wish them well under the new ownership.
”Closing of the transaction is expected in the second half of 2021 pending regulatory approvals. Lehigh Hanson will maintain ownership and management of these assets until that time.
HeidelbergCement is one of the world’s largest integrated manufacturers of building materials and solutions, with leading market positions in aggregates, cement, and ready-mixed concrete. Around 53,000 employees at more than 3,000 locations in over 50 countries deliver long-term financial performance through operational excellence and openness for change. At the center of actions lies the responsibility for the environment. As forerunner on the path to carbon neutrality, HeidelbergCement crafts material solutions for the future.
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