HeidelbergCement announced that its U.S. subsidiary Cadman Materials Inc., a part of Lehigh Hanson Inc., has finalized the acquisition of Cemex’s Pacific Northwest Materials Business consisting of aggregate, asphalt and ready mixed concrete operations in Oregon and Washington for a purchase price of $150 million.
“The acquisition strengthens our vertically integrated market position in the states of Washington and Oregon” explained Dr. Bernd Scheifele, chairman of the managing board of 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 seven aggregate quarries, five ready mix concrete plants and three 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.