HeidelbergCement subsidiary Cadman Materials Inc., a Lehigh Hanson company, has entered into an agreement to purchase the Pacific Northwest materials business of Cemex USA for $150 million. The materials business consists of seven quarries, five ready mixed and two asphalt operations in Oregon and Washington. Closing of the transaction, which is subject to final approval by regulators, is expected during the second quarter of 2017.
“The operations are an ideal strategic fit in order to broaden our vertically integrated market position in the states of Washington and Oregon” explained Dr. Bernd Scheifele, chairman of the managing board of Germany-based HeidelbergCement. “This is a bolt-on acquisition with low risks and we are expecting significant synergies. It is part of our strategy of disciplined growth and increasing shareholder returns.”
Cemex S.A.B. de C.V. inherited the Pacific Northwest business as part of its Rinker Materials acquisition in 2007. Consistent with recent sales of Cemex USA assets, the company will use proceeds from the Oregon and Washington deal for debt reduction.
