Hanson, the international building materials company, has acquired Thermalite, the British manufacturer and supplier of aircrete lightweight concrete blocks, from Etex Group for £120 million in cash. The fee is subject to a post completion working capital adjustment.
Hanson said in a statement that Thermalite is the UK market leader in aircrete blocks with production facilities located in Newbury, West Thurrock and Sutton Coldfield. Thermalite’s annual production is said to exceed one million cubic metres of aircrete blocks and it employs approximately 390 people. In the year to December 31, 2004, Thermalite generated earnings before EBITDA (earnings before interest, taxes, depreciation and amortisation) of £17.7 million.
Thermalite will be integrated into Hanson Building Products UK, which is one of the UK’s leading suppliers of clay bricks, clay pavers, concrete blocks, bagged aggregates and pre-cast concrete flooring.
Hanson added that the acquisition will significantly expand the concrete products range, following the recent expansion of its brick operations through the £65 million acquisition of Marshalls Clay Products in January.
Commenting on the acquisition, Alan Murray, Chief Executive of Hanson PLC, said: “This acquisition is consistent with our successful strategy of growth through bolt-ons and further enhances our position in one of our core markets. We will continue to pursue further value adding acquisition opportunities.”