Heidelberg Materials has entered into a definitive purchase agreement to acquire Highway Materials Inc, one of the largest independent aggregates and asphalt producers in the Greater Philadelphia market. Included with this acquisition are four crushed stone quarries, nine hot-mix asphalt plants, two clean fill operations, a concrete recycling facility, a construction services business, and more than 350 employees.
Earlier this month, Heidelberg Materials also successfully acquired two companies in Texas: Victory Rock, a producer of high-quality aggregates for concrete and asphalt as well as other related products with two well-positioned quarries, and Aaron Materials, an established concrete recycler and materials producer whose operations include concrete crushing, stabilised materials, and a volumetric concrete business.
“These latest US acquisitions reflect the progress of our ongoing efforts to optimise our portfolio by expanding our presence in this key region,” said Dr Dominik von Achten, chairman of the managing board, Heidelberg Materials. “We will continue on our growth trajectory in our key markets around the globe while pursuing the industry’s most ambitious sustainability goals.”
“We are excited to further expand our footprint in two of the fastest-growing areas in the US,” added Chris Ward, president and CEO of Heidelberg Materials North America. “The addition of these operations complements our existing aggregates businesses in Texas and Pennsylvania while also adding to our rapidly growing portfolio of circular solutions across North America.”
With these three acquisitions, Heidelberg Materials follows the ambition to acquire smaller- to medium-sized bolt-on assets to enhance the existing footprint in core growth markets. This also allows for considerable synergies from joint management and shared resources going forward. The total purchase price for the transactions is approximately US$380m with a combined expected post synergies EBITDA of around US$50m.
