May 23 2007
The boards of HeidelbergCement and Hanson have announced their
agreement on the terms of the recommended acquisition of the entire issued and to be issued share capital of Hanson at a price of 1100 pence sterling in cash for each Hanson Share, valuing Hanson's fully diluted share capital at approximately £8 billion.
HeidelbergCement is one of the leading producers of building materials
world-wide, with its core products being cement, ready-mixed concrete
and concrete products, aggregates, building materials and related
activities. The HeidelbergCement Group employs around 46,000 people in more than 50 countries and generated revenues in excess of €9 billion in 2006.
North American operations have a leading role in the revenue of the
HeidelbergCement Group, with additional imports from other regions to meet demand. HeidelbergCement has market leading positions in cement across Europe and Central Asia. It is also active in building materials markets in India, China, Indonesia and Africa.
Hanson is one of the world's largest suppliers of heavy building
materials to the construction industry, with turnover in 2006 of £4.1
billion. Its products fall into two categories: Aggregates (crushed rock, sand and gravel, ready-mixed concrete, asphalt and cement related products) and Building Products (concrete pipes, pre-cast products, concrete pavers, blocks, tiles and clay bricks). Hanson employs approximately 26,000 people, operating primarily in North America, the UK and Australia with further operations in Asia Pacific and Continental Europe.
The combined group would be the second largest in its industry, on a
world-wide basis, by proforma market capitalisation.
Commenting on the announcement, Dr Bernd Scheifele, CEO of HeidelbergCement, said: "We are delighted that Hanson has agreed to recommend our proposed offer. It is a defining moment for HeidelbergCement and its shareholders, and is consistent with our focus on strategic expansion into complementary geographies, across diversified products and customer markets.
“HeidelbergCement and Hanson are a perfect fit for each other, sharing
the same enthusiasm for operational efficiency and focus on adding
long-term value; reflecting the exceptional dedication and capability of
their respective employees and management teams.
“We believe that the combined business will be better able to respond
to the evolving needs of its customers in the competitive and rapidly
consolidating global building products industry.
“We are also pleased to announce that we have asked Alan Murray, CEO of Hanson, to join the top management of HeidelbergCement. His ongoing role is likely to include responsibility for the US and Australian operations."
Mike Welton, Chairman of Hanson, said: "The cash offer of 1100 pence
per share is more than 12 times Hanson's EBITDA for 2006 and represents very good value for Hanson Shareholders. Hanson and HeidelbergCement are highly complementary businesses and together will become one of the world's leading building materials suppliers. I believe the combined group will provide excellent opportunities for many of Hanson's people around the world".