Germany’s building materials giant Heidelberg Materials is acquiring U.S. cement producer Giant Cement Holdings and its subsidiaries in a $600 million deal.
Heidelberg Materials, considered the world’s second largest cement manufacturer, has been focused on expanding its presence in the United States in recent months. Back in July, it acquired three U.S. companies – Highway Materials, Victory Rock, and Aaron Materials – for a combined $380 million.
“Our latest additions are yet another great strategic fit, creating value in the near term through significant synergies with our existing assets on the East Coast. This move follows a series of key acquisitions this year that have already contributed to our consistently strong financial performance in North America,” Dominik von Achten, Chairman of the Managing Board of Heidelberg Materials, said in a statement.
Heidelberg Materials further stated that the deal is expected to close in the first quarter of 2025. It will contribute around $60 million in EBITDA (earnings before interest, taxes, depreciation, and amortization) in year one of the operations before “significant additional synergies.”
The U.S. is being viewed as an increasingly attractive market by large international building materials companies. The U.S. is expected to go through a period of increased construction activity for the foreseeable future thanks to large infrastructure projects, meaning that we can expect more similar deals in the future.