Heidelberg Materials UK

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Heidelberg Materials UK
Websiteheidelbergmaterials.co.uk

Heidelberg Materials UK is a

HeidelbergCement since August 2007, and was formerly listed on the London Stock Exchange and a constituent of the FTSE 100 Index
.

Originally trading as Wiles Group; the company was transformed into Hanson Trust Ltd by

Imperial Tobacco in 1986 and Kidde in 1987. Some of these acquisitions drew criticism and opposition. During 1991, Hanson Plc attempted its largest-yet acquisition of Imperial Chemical Industries
(ICI), but this was hotly contested and ultimately unsuccessful.

By the start of the 1990s, Hanson Plc had become a sizable

HeidelbergCement
purchased Hanson Plc in exchange for £8 billion to create the second largest cement and building materials company in the world. In October 2023, the company announced that it was rebranding as Heidelberg Materials.

History

Growth through acquisition

Originally known as Hanson Trust plc, the company was built up by James Hanson, later Lord Hanson, and Gordon White, later Baron White of Hull, who created Hanson Trust out of the former Wiles Group in 1964.[1]

Hanson and White were willing to take a wide range of measures to maximise value, including mass

Monopolies and Mergers Commission (MMC).[6]

One of the most notable takeovers, at least to the general public, was the acquisition in 1983, of the

typewriters business,[10] which included the paper division that was formerly the Allied Paper Corporation. Hanson promptly sold most of the SCM business units and the headquarters building in New York City for a significant profit.[11][12]

Hanson's most significant single purchase was probably its takeover of

Imperial Tobacco Group in 1986.[2] Hanson paid £2.5 billion for the group then undertook a major reorganisation; divestitures netted £2.3 billion, leaving Hanson with the hugely profitable tobacco business for "next to nothing."[2][6] Hanson sold off the food brand, Golden Wonder, to Dalgety plc in 1986.[13] Hanson was also involved in the politically charged Westland affair of the mid-1980s, giving its backing to the successful British Government-backed bidder for the British aerospace firm Westland Helicopters.[6][14]

In mid 1987, the firm acquired the American consumer products group

GFMS.[18]

During mid 1991, the company attempted to acquire

hostile takeover attempt, which ICI's management team chose to oppose.[20][21] The envisioned acquisition became hotly contested and controversial, partially as it would have been the biggest takeover in British history at that point.[22] In October 1991, Hanson opted not to proceed with the deal.[2][23]

During September 1991, Hanson acquired Beazer, a major British housebuilder, in exchange for $609 million.[24][25] Two years later, it also purchased a portion of the Watt Housing Corporation under a £116 million (£76 million) deal.[26]

During the mid-1990s,

The Energy Group and Millennium Chemicals.[1][28][29] This restructuring had reportedly cost the group £95 million in professional fees by August 1996.[30]

Building materials focus

During December 1997, Lord Hanson stepped down as chairman.[2] Led by Andrew Dougal, chief executive from 1997 until 2002,[31] the company focused on building materials. By December 1999, Hanson had become the world's biggest aggregates supplier and the second largest supplier of ready-mixed concrete.[32] In November 1999, Hanson acquired Australian building materials business Pioneer International.[33][34]

In early 2002, Dougal parted ways with Hanson, leaving with a controversially large pay-off (variously reported at between £400,000 and £660,000, plus a pension top-up of £636,700).[35][36]

Acquisition by HeidelbergCement

In May 2007,

HeidelbergCement announced its intent to purchase Hanson Plc for £11 per share, which valued it at approximately £8 billion. This deal made the combined company the second largest cement and building materials company in the world. The transaction was completed through Heidelberg subsidiary Lehigh UK on 22 August 2007.[37][38] In December 2014, Heidelberg Cement agreed to sell its Hanson Building Products division to the private equity firm Lone Star for £900 million.[39][40]

During 2023, Hanson was reportedly planning the construction of a new

cement works. The British government chose Hanson, along with other companies, to present progress plans for carbon reduction solutions.[41]

In October 2023, the company announced that it was rebranding as Heidelberg Materials, as part as a branding rationalisation by its parent company.[42]

Operations

The principal markets of Heidelberg Materials UK are the major conurbations in England and Wales and the central belt of Scotland.[43] The company supplies heavy building materials such as ready-mixed concrete, asphalt and cement to the UK construction industry.[44]

In March 2024, residents of Glyncoch, near Pontypridd in South Wales, started a series of protests around the over-riding of the local authority's opposition to extend quarrying by the Minister of Climate Change, Julie James. This successful appeal will allow a further 15.7 million tonnes of rock to be extracted for road surfacing and runways. The quarry operations will continue until 2047 and will come within 164 meters of schools and housing as well as destroying a community green space and a wildlife sanctuary.[45]

The appeal report claimed that "The dust assessments concluded that the potential impacts associated with both the continuation of existing activities and the proposed extension would be slight adverse at most." and that "From all that I have seen and read there are no objections or concerns relating to landscape, visual impact, ecology, hydrology, cultural heritage, agricultural land quality impacts" [46]

See also

References

  1. ^ a b "Hanson: History". Archived from the original on 28 September 2010. Retrieved 6 December 2008.
  2. ^ a b c d e f g "Obituary: Lord Hanson". The Times.[dead link‍]
  3. ^ "UK: The enhancement of Hanson. (2 of 8)". managementtoday.co.uk. 1 August 1991.
  4. ^ Cowe, Roger (2 November 2004). "Lord Hanson". The Guardian.
  5. ^ a b "UK: The enhancement of Hanson. (3 of 8)". managementtoday.co.uk. 1 August 1991.
  6. ^ a b c d "UK: The enhancement of Hanson. (4 of 8)". managementtoday.co.uk. 1 August 1991.
  7. ISBN 9781907195204
    .
  8. ^ "Habitat: design of the times". The Guardian. 28 July 2011. Retrieved 6 March 2020.
  9. ISBN 9781349215614
    .
  10. ISSN 0362-4331
    . Retrieved 19 January 2023.
  11. ^ Pratley, Nils (2 November 2004). "Legacy of the lord with the Midas touch". The Guardian.
  12. ^ "ICI AGREES TO ACQUIRE GLIDDEN FROM HANSON". Journal of Commerce Staff. 17 August 1986.
  13. ^ "Golden Wonder timeline". Financial Times. Archived from the original on 11 December 2022. Retrieved 4 August 2014.
  14. ^ Harrison, Michael (4 October 1988). "GKN plots new course: Michael Harrison on the strategy of Westland's latest shareholder". The Independent.
  15. ^ Fabrikant, Geraldine (6 August 1987). "Hanson Will Buy Kidde In a $1.79 Billion Deal". The New York Times.
  16. ^ "HANSON GETS KIDDE STOCK". AP-Dow Jones. 12 November 1987.
  17. ^ "Hanson Bids $4.8 Billion for Gold Firm". Los Angeles Times. 23 June 1989.
  18. ^ "Hanson sells off ConsGold's 30% Gold Fields stake". The Herald. 15 August 1989.
  19. ^ Wearden, Graeme (13 August 2007). "The rise and fall of ICI". The Guardian.
  20. ^ Prokesch, Steven (18 May 1991). "Often-ravenous Hanson takes a taste of ICI". The New York Times. Archived from the original on 18 February 2009. Retrieved 27 September 2010.
  21. ^ MacLeod, Alexander (4 June 1991). "Britain's ICI, Hanson Gird for Buyout War". The Christian Science Monitor.
  22. ^ "ICI: Hanson's Choice". imdb.com. 29 July 1991.
  23. ^ Owen, Geoffrey; Harrison, Trevor (April 1995). "Why ICI Chose to Demerge". Harvard Business Review.
  24. ^ "Hanson to Buy Beazer In $609 Million Deal". The New York Times. 17 September 1991. Retrieved 7 April 2012.
  25. ^ "Hanson makes $600 million bid for building group Beazer". UPI. 16 September 1991.
  26. ^ Cole, Robert (16 April 1993). "Hanson buys into American house builder: Conglomerate confident of 'pretty good timing' for dollars 116m deal". The Independent.
  27. ^ Stevenson, Richard W. (23 February 1995). "Hanson Plans Spinoff of 34 U.S. Companies". The New York Times.
  28. ^ "Caverham sells Timberlands for record price". Merchant Magazine. April 1996. pp. 28–29.
  29. ^ "Hanson plc to split itself into four companies". irishtimes.com. 31 January 1996.
  30. ^ Stevenson, Tom (28 August 1996). "Hanson faces pounds 95m bill for breaking up". The Independent. Archived from the original on 9 May 2022. Retrieved 8 November 2017.
  31. ^ "Andrew Dougal, non-executive director". Carillion. Archived from the original on 15 January 2018. Retrieved 17 January 2018.
  32. ^ "On aggregate, Hanson is a buy". The Guardian. 10 December 1999. Retrieved 17 January 2018.
  33. ^ "Hanson Seeks to Buy Australian Concern". The New York Times. 29 November 1999.
  34. ^ "Hanson secure ownership of Pioneer". agg-net.com. 1 June 2000.
  35. ^ Osborne, Alistair (20 April 2002). "Hanson stands by chief's huge payoff". The Daily Telegraph. Retrieved 17 January 2018.
  36. ^ Cope, Nigel (12 March 2003). "Ex-Hanson chief gets £660,000 plus pension top-up". Independent. Archived from the original on 9 May 2022. Retrieved 17 January 2018.
  37. ^ Blackden, Richard (15 May 2007). "Heidelberg to buy Hanson for £8bn". telegraph.co.uk.
  38. ^ "Hanson agrees $16 bln offer from HeidelbergCement". Reuters. 9 August 2007.
  39. ^ "UK brick maker Hanson sold by German owner for £900m". The Telegraph. 24 December 2014. Retrieved 30 January 2015.
  40. ^ "HeidelbergCement sells building products business to Lone Star". Reuters. 24 December 2014.
  41. ^ "Climate change: Flintshire cement work's carbon capture plan". BBC News. 10 August 2023. Retrieved 10 August 2023.
  42. ^ "Hanson UK becomes Heidelberg Materials". Builders' Merchants News. 2 October 2023. Retrieved 2 October 2023.
  43. ^ UK, Youth Employment (14 June 2021). "How Does Hanson UK Supply Heavy Building Materials To The Construction Industry?". Youth Employment UK. Retrieved 19 January 2023.
  44. ^ Yumpu.com. "Hanson UK - HeidelbergCement". yumpu.com. Retrieved 19 January 2023.
  45. ^ "Pontypridd: Glyncoch protest over Craig-yr-Hesg quarry expansion". bbc.com. Retrieved 22 April 2024.
  46. ^ Burston, J. "APPEALS BY: Hanson UK Ltd" (PDF).
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