Lone Star Industries announced it has agreed to be purchased by German building materials giant Dyckerhoff AG for $50 a share in cash, or nearly $1.2 billion. This move marks the first major stride by Dyckerhoff into the North American marketplace, following several years of expansion in Europe. Previously, Dyckerhoff's only major U.S. cement interest was a 50% ownership in Glens Falls Lehigh Cement Co.

News of this latest merger sent Lone Star stocks shooting up 42% to 4911/48 when it was announced on Sept. 2. The $50 per share offer represents a 45% premium on the Sept. 1 closing price for Lone Star common stock. As part of the merger agreement, Dyckerhoff also will assume Lone Star's $50 million in debt. Lone Star's board of directors has approved the transaction unanimously and has recommended acceptance by the Lone Star stockholders. The acquisition should close sometime in October. Dyckerhoff has indicated that it will use Lone Star as a platform to enter into other North American cement, ready-mixed concrete, and aggregates industries.

A source at Lone Star said David W. Wallace, chairman of Lone Star, and William M. Troutman, CEO and president, plan to retire at the completion of the merger. Aside from this, Dyckerhoff has announced it will keep the Lone Star name and current staff. Early speculation at press time has Michael B. Clarke, president and CEO of Glens Falls Lehigh, replacing Troutman. Clarke told Cement Americas in a recent interview that he was one of the key players in orchestrating the Dyckerhoff-Lone Star merger. Since Glens Falls Lehigh is partly owned by Heidelberger Zement AG, a Dyckerhoff competitor, Clarke probably will not be able to continue with the Glens Falls, N.Y.-based company.

Lone Star operates six cement plants and 14 distribution terminals, primarily in Midwest and South Central markets. Dyckerhoff had 1998 sales of $2.2 billion.