Heidelberg Materials in Acquisition 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 US consist of an integrated cement plant with an annual capacity of 800,000 tonnes of cement in Harleyville, South Carolina, a network of four cement distribution terminals in Georgia and South Carolina as well as a joint venture deep-water import terminal in Savannah, Georgia. Assets in the New England area comprise a cement and slag distribution terminal in Newington, New Hampshire, and a deep-water import terminal in Boston, Massachusetts. Also included in the transaction is Giant Resource Recovery, an alternative fuel recycling business with four strategically located facilities in the Eastern US.

The purchase price for the transaction is approximately $600 million subject to ordinary post-closing adjustments. The transaction is expected to be completed in the first quarter of 2025 and to contribute around US$60 million in EBITDA in the first year of operation 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-mixed concrete.

For more information, please see the press release.