HeidelbergCement To Sell NA, UK Building Products Business For $1.4 Bln

(RTTNews) - HeidelbergCement AG (HDELY.PK) Wednesday said it has entered into a definitive agreement with an American affiliate of Lone Star Funds to sell its North American (excluding Western Canada) and United Kingdom building products business, collectively called Hanson Building Products, for an aggregate purchase price of $1.4 billion.

Of the price, up to $100 million will be payable in 2016, depending on the performance of the business in 2015.

The closing is subject to the satisfaction of customary closing conditions, and is expected to close in the first quarter of 2015.

The sale is consistent with the firm's strategy of focusing on processing and refining raw materials for its core products of cement and aggregates and further downstream activities.

HeidelbergCement will use the transaction proceeds to reduce its financial debts.