Adelaide Brighton Ltd has spent US$81m buying concrete products business Hanson Building Products Pty Ltd (HBP), to increase its exposure to the fast-growing Queensland market for masonry products.
The acquisition is expected to be immediately earnings per share accretive and will make Adelaide Brighton the market leader in masonry products in Australia, with a number one or two position in all states except Western Australia.
HBP has eight production facilities, six in Queensland and two in Tasmania, and generates about 90 per cent of its sales in the Sunshine State.
Adelaide Brighton managing director Mark Chellew said the acquisition would be added to its existing C&M Brick concrete products company and that there was potential for significant synergies.
“We will make transport savings and we will move our head office for our masonry business from Victoria to Queensland because it’s a bigger market and there is more masonry expertise in Queensland,’’ he said.