Holcim strengthens aggregate business in US
Strengthening of aggregates and related businesses in the US: Acquisition of Meyer Material Company in Illinois
Aggregate Industries, a wholly owned subsidiary of Holcim Ltd, has agreed to acquire 100 percent of Meyer Material Company (Meyer) for USD 231
million from U.S. Equity Partners, L.P. and Park Avenue Equity Partners,
L.P. Completion of the acquisition is anticipated to occur in July 2006
subject to regulatory approval.
Meyer, based near Chicago in Illinois, is a leading supplier of aggregates,
ready-mix concrete and concrete paving products. The company’s primary
markets are located in the Northwestern part of Metropolitan Chicago and
Southeastern Wisconsin. Meyer operates 6 sand and gravel pits as well as 25
ready-mix concrete plants and a modern concrete paving products
manufacturing facility. Meyer has 125 million tonnes of reserves as well as
considerable underground reserves which may be considered for future
development. The company employs about 750 people.
In 2005, Meyer sold approximately 5 million tonnes of aggregates, 1.5
million cubic meters of ready-mix concrete and 0.5 million square meters of
concrete paving and retaining wall systems. In 2005, net sales reached
approximately USD 190 million.
The acquisition of this well positioned construction materials company
strengthens Aggregate Industries’ aggregates and related businesses
positions in the US. Meyer provides a new platform for the future growth of
the Holcim Group in the fast growing suburbs of Chicago, the third largest
city in the US. In addition, Holcim expects to achieve significant
synergies from more efficient cement logistics and product optimization at
Holcim US. Meyer is to be fully integrated into Aggregate Industries’ US
operations and will be managed as a new region. This acquisition reinforces
Holcim’s dual product strategy centering on cement and aggregates in the
Holcim is one of the world’s leading suppliers of cement and aggregates
(crushed stone, sand and gravel) as well as further activities such as
ready-mix concrete and asphalt including services. The Group holds majority
and minority interests in more than 70 countries on all continents.