Heidelberg Materials acquires NCC's Swedish and Norwegian aggregates and asphalt business for approximately SEK 5.5 billion

en.Wedoany.com Reported - Heidelberg Materials' Nordic business has signed a binding agreement to acquire the aggregates and asphalt business of NCC's Industry business area in Sweden and Norway. NCC is one of the leading construction companies in the Nordic region. Heidelberg Materials said the acquisition will complement its existing footprint in Sweden and Norway and further strengthen its ability to capture growth opportunities arising from rising infrastructure demand in these core markets.

NCC's Industry business area is headquartered in Stockholm and operates 106 aggregate sites with substantial reserves and 44 hot-mix asphalt plants in Sweden and Norway. The total enterprise value of the transaction is approximately SEK 5.5 billion, on a cash-free, debt-free basis, corresponding to a pro forma EBITDA multiple below Heidelberg Materials' own level.

Dr Dominik von Achten, Chairman of the Managing Board of Heidelberg Materials, said the acquisition is another decisive step in optimizing the portfolio and further strengthening the Nordic business. NCC's strong and widely distributed network of aggregates and hot-mix asphalt sites complements Heidelberg Materials' existing footprint in cement, aggregates, ready-mixed concrete and precast concrete in Sweden and Norway, and also reflects the company's focus on a pure-play strategy, laying the foundation for continued growth and long-term value creation.

Jon Morrish, Member of the Managing Board of Heidelberg Materials responsible for Europe, said customers will benefit from a truly integrated product offering; in addition to adding high-quality asphalt to the expanding building materials portfolio, the company is further strengthening regional aggregates capacity. With the expanded footprint, Heidelberg Materials will be able to grow its business while meeting the increasing infrastructure needs in Sweden and Norway.

The transaction is subject to approval by the relevant authorities.