(IN BRIEF) Heidelberg Materials North America is acquiring Giant Cement Holding Inc. (GCHI) and its subsidiaries for $600 million to expand its presence in the Southeastern U.S. and New England. The deal includes a cement plant in South Carolina, multiple distribution terminals, and an alternative fuel recycling business, furthering the company’s sustainability and decarbonization goals. Expected to close in Q1 2025, the acquisition is projected to contribute $60 million in first-year EBITDA and aligns with Heidelberg Materials’ recent U.S. acquisitions aimed at strengthening its position in the North American market.
(PRESS RELEASE) HEIDELBERG, 28-Nov-2024 — /EuropaWire/ — Heidelberg Materials North America has announced a definitive agreement to acquire Giant Cement Holding Inc. (GCHI) and its subsidiaries, including Giant Cement Company, Dragon Products Company, and Giant Resource Recovery. This acquisition bolsters Heidelberg Materials’ cement footprint across the Southeastern U.S. and New England, aligning with its strategy to advance circular economy initiatives and decarbonization efforts.
Dr. Dominik von Achten, Chairman of the Managing Board of Heidelberg Materials, highlighted the acquisition’s alignment with the company’s strategic objectives: “This is another strategic fit, generating near-term value through synergies with our East Coast assets. It reinforces our position as a leader in building a sustainable future while advancing our circular economy and net-zero commitments.”
Chris Ward, President and CEO of Heidelberg Materials North America, emphasized the operational benefits: “This acquisition strengthens our cement network in growing markets and expands our ability to serve customers more effectively. The synergies with the Giant Resource Recovery business are particularly exciting as we push forward with sustainable innovations.”
Valued at approximately $600 million, the transaction is set to close in Q1 2025. Heidelberg Materials expects the acquisition to contribute $60 million in EBITDA in its first operational year, with significant additional synergies anticipated over time.
Building on Recent U.S. Acquisitions
This deal follows a series of key acquisitions in 2024, including Highway Materials in the Greater Philadelphia market, Carver Sand & Gravel in Albany, New York, and Victory Rock, a producer of aggregates for concrete and asphalt. These moves collectively strengthen Heidelberg Materials’ North American presence and reinforce its commitment to sustainable growth in the region.
With this acquisition, Heidelberg Materials solidifies its position as a leading player in the North American construction materials market, advancing sustainability while meeting the demands of a growing customer base.
Heidelberg Materials is one of the world’s largest integrated manufacturers of building materials and solutions with leading market positions in cement, aggregates, and ready-mixed concrete. We are represented in around 50 countries with around 51,000 employees at almost 3,000 locations. At the centre of our actions lies the responsibility for the environment. As the front runner on the path to carbon neutrality and circular economy in the building materials industry, we are working on sustainable building materials and solutions for the future. We enable new opportunities for our customers through digitalisation.
Christoph Beumelburg
Director Group Communication & Investor Relations
Tel: +49 6221 48113-249
info@heidelbergmaterials.com
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First published in this link of EuropaWIRE.
