Aggregate Industries, a wholly owned subsidiary of Holcim Ltd, has agreed to acquire 100 per cent of Meyer Material Company (Meyer) for US$231m from US Equity Partners, LP and Park Avenue Equity Partners, LP. 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 six sand and gravel pits as well as 25 ready-mix concrete plants and a modern concrete paving products manufacturing facility.
Meyer has 125Mt of reserves as well as considerable underground reserves which may be considered for future development. The company employs about 750 people.
Last year, Meyer sold approximately 5Mt 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 US$190m.
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 US.