Finance
Heidelberg Materials buys US firm Giant Cement for $600 million
Global Banking & Finance Review®
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BERLIN (Reuters) -Heidelberg Materials has struck a deal to buy U.S. company Giant Cement Holding and its subsidiaries for $600 million, it said on Thursday, the latest acquisition by the German company to expand its foothold in the United States.
BERLIN (Reuters) -Heidelberg Materials has struck a deal to buy U.S. company Giant Cement Holding and its subsidiaries for $600 million, it said on Thursday, the latest acquisition by the German company to expand its foothold in the United States.
The transaction, to be completed in the first quarter of 2025, is expected to contribute around $60 million in earnings before interest, taxes, depreciation and amortisation (EBITDA) in the first year of operation, “before significant additional synergies”, Heidelberg said in a statement.
“The acquisition … will further strengthen our cement footprint in the growing Southeastern U.S. and New England markets,” said Chris Ward, CEO of Heidelberg Materials North America.
Giant Cement Holding was owned by Mexican billionaire Carlos Slim’s Spanish cement and real estate unit Inmocemento which will book a capital gain of $145 million on the asset sale, the Spanish company said in a separate filing to the Spanish stock market regulator.
Inmocemento was spun off from Slim’s Spanish conglomerate FCC earlier this month.
(Reporting by Rachel More and Javi West Larrañaga, editing by Thomas Seythal and Inti Landauro)
An acquisition is a corporate action in which one company purchases most or all of another company's shares to gain control. This often helps the acquiring company expand its market presence or diversify its products.
A capital gain is the profit earned from the sale of an asset, such as stocks or real estate, when the selling price exceeds the purchase price. It is subject to taxation.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a measure used to analyze a company's operating performance and profitability without the effects of capital structure and tax rates.
Corporate strategy refers to the overall plan and direction a company takes to achieve its goals and objectives. It encompasses decisions about resource allocation, mergers, acquisitions, and market positioning.
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