Heidelberg Cement has confirmed the sale of its Hanson Building Products subsidiary for US$ 1.4 billion.
The deal with private equity company Lone Star Funds is for Heidelberg's US and UK concrete building products businesses. It said this would clear the way for the Germany-based company to focus on its core raw materials refining operations.
Hanson Building Products employs 4,621 people and has more than 100 production plants in North America and the UK. It had revenues of US$ 1.1 billion in 2013.
Dr Bernd Scheifele, CEO of Heidelberg Cement, welcomed the deal, which is scheduled to be completed by the end of the first quarter of 2015.
He said, “Hanson Building Products is a multinational business with leading market positions, but the focus of its product portfolio on bricks, pressure and gravity pipes, and precast is outside the core businesses of Heidelberg Cement.
“We are pleased Lone Star will acquire this business, which as an experienced financial investor will support the sustainable development of the business going forward. We will use the proceeds to accelerate our debt pay down.”
The first indications that Heidelberg Cement wanted to divest Hanson Building Products came in September, when a stock market floatation of the business was raised as a possibility.