Hanson acquire Ohio aggregates and concrete business
"HANSON plc have acquired Davon Inc, the largest aggregates and ready-mixed concrete producers in southern Ohio, for US$99.8 million (£68 million) in cash.
With headquarters in Ohio's state capital Columbus, Davon's operations include six aggregate production sites in southern Ohio and north-eastern Kentucky. In southern Ohio they also have an aggregates distribution yard, eight ready-mixed concrete plants, a concrete block plant and a precast concrete products plant.
For the year to 31 December 1999, Davon produced over 5 million tons of aggregates, 290,000yd3 of ready-mixed concrete and an estimated 4 million concrete blocks. During the same period Davon achieved sales revenues of $49.1 million and operating profits of $6.2 million. Permitted aggregate reserves exceed 300 million tons, sufficient for over 60 years at current extraction rates.
Hanson say the acquisition complements their recently expanded operations in Ohio and creates opportunities for administrative and operational synergies.
Andrew Dougal, chief executive of Hanson plc, said: 'Our long-term strategy in the US is to focus on expanding our presence in those areas we have identified as growth markets. Ohio fits this strategy and Davon provide critical mass in this market as well as being a potential platform for further growth through selective bolt-on acquisitions.'"
