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May 24 2021, 08:35 IST/BST
HeidelbergCement (HEI) has agreed to sell its US West business to Martin Marietta for US$2.3bn. The deal was previously flagged in media reports but should be well received given the price achieved (c.3x sales, c.15x EBITDA). The sale does not include the group’s Permanente plant, which – located close to Cupertino – represents valuable real estate in the middle of Silicon Valley. While HEI has referenced using proceeds to increase bolt-ons and capacity elsewhere in North America, the expectation is that the sale will prompt a meaningful share buyback upon completion.
May 24 2021, 08:35 IST/BST