Hanson Australia has acquired Alex Fraser Group, a leading provider of recycled construction materials and asphalt in Australia.
A subsidiary of the German multinational HeidelbergCement, Hanson Australia acquired the company after John Swire & Sons decided to sell Alex Fraser Group last year following a strategic review. The purchase price for the assets amounts to about €135 million (approximately $208 million AUD).
“The acquisition represents an important step for Hanson Australia and it further strengthens the market position in the urban centers of Melbourne and Brisbane,” said Chairman of the Managing Board of HeidelbergCement, Dr. Bernd Scheifele.
“In particular it will provide Hanson Australia with expertise in asphalt and construction materials recycling that complements the existing business and can be leveraged for entry into other markets. It is fully in-line with our strategy of value creating acquisitions, and we are expecting significant synergies.”
Established in 1879, Alex Fraser has become Australia’s leading provider of recycled construction materials and operates three facilities in Melbourne and two in Brisbane. It also produces asphalt out of two plants in Melbourne. Alex Fraser is expected to generate €20 million ($30 million AUD) of EBITDA in 2018 (including synergies of approximately €3 million ($4 million AUD). Alex Fraser will retain its brand and continue to operate as a stand-alone business.
HeidelbergCement is one of the world’s largest integrated manufacturers of building materials with leading market positions in aggregates, cement, and ready-mixed concrete. The company employs some 60,000 people at more than 3,000 locations in around 60 countries.