Aggregate Industries Limited, a wholly owned subsidiary of Holcim Ltd, has made a recommended cash offer to acquire the entire issued share capital of Foster Yeoman Limited, the privately-held UK heavy building materials group. This acquisition will be notified to the relevant competition authorities.
Aggregate Industries has received irrevocable undertakings to accept the offer in respect of, in aggregate, approximately 68.3 per cent of Foster Yeoman's existing issued ordinary share capital. These undertakings will remain binding in the event of any competing offer.
Foster Yeoman owns Torr Works, a limestone quarry in England, and the Glensanda quarry, a granite quarry in Scotland, which together have almost 1 billion tonnes of raw material reserves. Foster Yeoman's sales activities are supported by a network of depots across the UK and a network of sales points at major ports in Northern and Western Continental Europe. In the financial year ended 27 May 2005, Foster Yeoman had sales of approximately GBP 224 million and sold more than 11 million tonnes of aggregates and about 1.5 million tonnes of asphalt.
Holcim's takeover of Foster Yeoman ideally rounds out Aggregate Industries' aggregates and asphalt operations in the UK. At the same time, Holcim can secure an attractive network in the coastal markets of Northern and Eastern Europe. The integration of Foster Yeoman into the Holcim Group will also reinforce the dual product strategy centering on cement and aggregates.
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Holcim is one of the world's leading suppliers of cement and aggregates (crushed stone, sand and gravel) as well as further activities such as ready-mix concrete and asphalt including services. The Group holds majority and minority interests in more than 70 countries on all continents.
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