Heidelberg Material on the takeover of GCHI

Heidelberg Material on the takeover of GCHI

Cleary Gottlieb represented Heidelberg Materials North America in its definitive purchase agreement to acquire Giant Cement Holding Inc. (GCHI) and its subsidiaries Giant Cement Company, Dragon Products Company and Giant Resource Recovery from the Fortaleza, Uniland and Trituradora Groups.

The transaction's assets in the Southeastern United States include an 800,000-ton-per-year integrated cement plant in Harleyville, South Carolina, a network of four cement distribution terminals in Georgia and South Carolina, and a joint venture deepwater import terminal in Savannah, Georgia. Assets in the New England region include a cement and slag distribution terminal in Newington, New Hampshire and a deepwater import terminal in Boston, Massachusetts. Also included in the transaction is Giant Resource Recovery, an alternative fuel recycling company with four strategically located facilities in the eastern United States.

The purchase price for the transaction is approximately $600 million, subject to customary post-closing adjustments. The transaction is expected to close in the first quarter of 2025 and will contribute approximately $60 million to EBITDA in the first year of operations, before significant additional synergies.

Heidelberg Materials is one of the world's largest integrated manufacturers of building materials and solutions with leading market positions in cement, aggregates and ready-mix concrete.

Further information can be found in the press release.

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