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[March 2004]
Hanson Acquires Texas Brickmaker
Hanson PLC announced on 1 March 2004 that it had acquired the US brick manufacturer Athens Brick Company (Athens, TX, USA) from Texas Industries Inc for US$40.4 million (£21.6 million) in cash (on a debt-free basis and subject to usual post-closing adjustments).
Athens produces facing brick used in residential and commercial construction from two plants in Texas and one in western Louisiana. The combined annual capacity of these plants - which employ around 90 people - is 90 million bricks. Athens controls clay and shale reserves sufficient for more than 20 years' production.
In its fiscal year ending 31 May 2003, Athens generated unaudited revenues of US$14.7 million and EBITDA of US$6.5 million. During that period, Athens shipped over 84 million bricks. After taking into account possible fair value adjustments, it is currently estimated that goodwill of approximately US$20 million (£10.7 million) will arise on this acquisition.
The Athens plant will be integrated into Hanson Brick's South Central Region, bringing its combined capacity of facing brick in the area to around 450 million per year across eight plants. This region consumes a significant portion of the total US facing brick output and US Census Bureau projections for population growth in Texas for the foreseeable future are well ahead of the national average.
In 2003, Hanson embarked on integrating and rebranding its seven brick businesses into one unified company, 'Hanson Brick'. With a capacity of 1.6 billion bricks from its 22 plants (excluding Athens), Hanson Brick is the largest brick manufacturer in North America and the third largest in the USA.
ENDS