Heidelberg Materials announced that it has signed a definitive purchase agreement to acquire Highway Materials, Inc. This purchase includes four crushed stone quarries, nine hot mix asphalt plants, two clean fill operations, a concrete recycling facility, a construction services company and more than 350 employees.
Chris Ward, Heidelberg Materials North America President and CEO, commented on how excited they are to further expand their presence in the United States, primarily in two of the fastest growing areas, as these operations are complementary with its aggregate business in Texas and Pennsylvania. Likewise, these additions to their portfolio adds value to their rapidly growing circular solutions in North America.
Earlier this month, the company acquired two companies in Texas: Victory Rock, a producer of high-quality aggregates for concrete and asphalt, and Aaron Materials, a well-established concrete and materials recycler producer whose operations include concrete crushing, stabilized materials and a volumetric concrete business.
According to Chairman of the Board of Directors, Dr. Dominik von Achten, these latest acquisitions reflect the progress of the company’s ongoing efforts to optimize its portfolio by expanding its presence in this region that is key for this industry, while continuing to grow in other key markets around the world and pursuing the industry’s most ambitious sustainability goals.
With these three acquisitions, Heidelberg Materials continues under its strategy of acquiring complementary small to medium-sized assets to enhance its existing presence in key growing markets. This also allows them to create considerable synergies from joint management and shared resources in the future. The total purchase price of the transactions is approximately $380 million with EBITDA combined with future synergies expected to be around $50 million.
Heidelberg Materials continues to show their commitment to the goal of net zero emissions and increasing the circular economy in North America. Recently, the company announced the successful conversion of its cement plant in Speed, Indiana, to a slag grinding facility to better support the growing demand for sustainable products in the Midwest market in the US. The plant ceased Portland cement production in 2023 following the opening of a new plant in Mitchell, Indiana. Currently, they produce slag cement using domestically sourced slag granules. This headquarters has a grinding capacity of more than 400,000 tons per year and also has the role as a distribution center for cement and other products from the Mitchell plant.
Highway Materials, Inc., Heidelberg Materials most recent acquisition, is a producer of hot mix asphalt, crushed stone and sand for the highway and heavy construction industries. The company was founded in 1936 and has facilities in Chester, Franklin, Lancaster, Montgomery and Northampton counties. Among their locations, they operate 9 asphalt plants where they produce mixtures approved by PennDOT and PTC, along with commercial mixes for private projects, 5 quarries where they produce aggregates approved by AASHTO and PennDOT, a clean fill reclamation facility that accepts construction debris, including stone, dirt, concrete, unpainted bricks and blocks, and concrete.
Heidelberg Materials is one of the world’s largest integrated manufacturers of construction materials and solutions with market leadership in cement, aggregates and ready-mix concrete. They are present in more than 50 countries with around 51,000 employees in almost 3,000 offices. The responsibility with the environment is present in all their processes and actions. They consider themselves pioneers on the path towards carbon neutrality and circular economy in the building materials industry, and that is why they work with sustainable construction materials and solutions for the future.