Heidelberg Materials buys US firm Giant Cement for $600 mln (updated)
28/11/2024 08:19
(Adds Inmocemento, in paragraphs 4-5)
BERLIN, Nov 28 (Reuters) - Heidelberg Materials
HEIG.DE has struck a deal to buy U.S. company Giant Cement
Holding and its subsidiaries for $600 million, it said on
Thursday, the latest acquisition by the German company to expand
its foothold in the United States.
The transaction, to be completed in the first quarter of
2025, is expected to contribute around $60 million in earnings
before interest, taxes, depreciation and amortisation (EBITDA)
in the first year of operation, "before significant additional
synergies", Heidelberg said in a statement.
"The acquisition ... will further strengthen our cement
footprint in the growing Southeastern U.S. and New England
markets," said Chris Ward, CEO of Heidelberg Materials North
America.
Giant Cement Holding was owned by Mexican billionaire
Carlos Slim's Spanish cement and real estate unit Inmocemento
IMCO.MC which will book a capital gain of $145 million on the
asset sale, the Spanish company said in a separate filing to the
Spanish stock market regulator.
Inmocemento was spun off from Slim's Spanish conglomerate
FCC FCC.MC earlier this month.
(Reporting by Rachel More and Javi West Larrañaga, editing by
Thomas Seythal and Inti Landauro)
((rachel.more@thomsonreuters.com;))