In a move HeidelbergCement is considering part of the company's "Beyond 2020" strategy furthering its "portfolio optimization and margin improvement program", the company has signed an agreement to sell its business for the U.S. West region to Martin Marietta Materials Inc. for $2.3 billion.
In the official announcement on the morning of May 24, Dr. Dominik von Achten, Chairman of the Managing Board of HeidelbergCement was quoted: “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.”
According to HeidelbergCement.com, the ideas behind the Beyond 2020 strategy includes:
- Business excellence
- Portfolio management
- People and organization
- Digital transformation, and
- Financial strategy and capital allocation.
This isn't the first optimization for HeidelbergCement. In early May, the company sold its Greek aggregate business and two ready-mixed concrete plans to the Swiss LafargeHolcim group. The sale price was not disclosed.
Furthering the news, 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 states of California, Arizona, Oregon, and Nevada. The Permanente cement plant and quarry is the only exception. The sale includes two cement production plants with related distribution terminals, 17 active aggregates sites, and several downstream operations.
“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," said Ward.
The transaction is expected to close in the second half of 2021, pending regulatory approvals. Until then, Lehigh Hanson will maintain ownership and management of the assets.