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[May 2002]
Hanson Acquires Pipe Manufacturer in USA
Hanson PLC has acquired Choctaw Inc from Amatek Holdings Ltd on a debt free basis for US$135 million. Headquartered in Memphis, TN, USA, Choctaw is the leading manufacturer of concrete pipe and related drainage products in the southern USA. It operates 17 production facilities serving Alabama, Arkansas, Louisiana, Mississippi and Tennessee and its principal products are reinforced concrete pipe, corrugated steel pipe and precast concrete structures.In the financial year to 30 June 2001, Choctaw's audited sales revenue was US$92.3 million, EBITDA was US$21 million and EBIT was US$16.5 million. After taking into account adjustments, it is estimated that goodwill of approximately US$70 million will arise on this acquisition.
Choctaw will become part of Hanson Pipe & Products (HP&P), the largest manufacturer of concrete pipe and precast products in North America. HP&P is headquartered in Dallas, Texas and will have 90 production facilities across 20 US states and Ontario, Canada.
The markets in which Choctaw operates are not currently served by HP&P and, as a result, the acquisition provides a bridge to link HP&P's operations, across the south eastern US and helps to complete HP&P's targetted geographic spread.
ENDS