Holcim poised to acquire Aggregate Industries
FURTHER consolidation of the UK aggregates sector is looking increasingly likely following last month’s news that Holcim of Switzerland, the world’s second largest cement group, have tabled a bid to acquire Aggregate Industries.
The Zurich-based group has offered 138p in cash per share plus a 2p dividend if the offer is accepted unconditionally, valuing Aggregate Industries at around £1.8 billion. Holcim plan to finance the deal through existing cash balances and new committed credit facilities.
Industry analysts believe that rival takeover bids are unlikely and say Holcim’s offer is likely to secure the deal.
Both firms are currently awaiting the outcome of due diligence, but Aggregate Industries’ board has already stated that it is ‘minded to recommend’ the offer, which chief executive Peter Tom described as a ‘good deal for shareholders’.
The Swiss firm hopes to achieve around £70 million of synergies from the acquisition and plans retain Aggregate Industries’ top executives, including Mr Tom, for at least 18 months if the deal goes ahead.
Holcim, who are valued at £6.2 billion, operate in more than 70 countries and employ more than 48,000 people. The acquisition would give the company a strong foothold in the UK, as well as access to Aggregate Industries’ key US markets.
If the deal goes ahead as planned, it will be the second major takeover in the aggregates sector in the last six months, following hard on the heels of CEMEX’s £2.3 billion takeover of RMC Group, and will leave Hanson as the only UK-quoted major aggregates group.
