FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Rule 13a
- 16 or 15d - 16 of
The Securities and Exchange Act of 1934
For the Month of March, 2006
HANSON PLC
1 Grosvenor Place, London, SW1X 7JH, England
[Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40F.]
Form 20-F X Form 40-F
[Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.]
Yes No X
March 2, 2006
Hanson acquires Material Service, a major US aggregates producer, for $300
million (£170m)
Hanson PLC, the international building materials company, announced today that
it has signed a contract to acquire Material Service Corporation ('Material
Service') from General Dynamics Corporation (NYSE GD) for $300 million (£170m)
in cash. Completion of the acquisition, which is subject to final due diligence
and regulatory approval, is anticipated to occur in the second quarter of 2006.
Headquartered in Chicago, Illinois, Material Service is the thirteenth largest
producer of aggregates in the United States. Established in 1919 by the Crown
family, it merged with General Dynamics in 1959. Material Service employs more
than 800 people and operates ten crushed stone quarries and three sand and
gravel quarries. The company's primary market is Illinois, including the greater
metropolitan area of Chicago. Illinois is the fifth largest aggregates market in
the USA. Three of the crushed stone locations are in western Indiana.
Material Service is ranked first or second in all of the markets it serves. In
2005, it sold over 20 million US tons of aggregates and is estimated to have
approximately 1.5 billion tons of aggregate reserves. In the financial year to
December 31, 2005, Material Service's audited sales revenue was approximately
$160 million, gross assets were approximately $120 million and EBITDA was
approximately $40 million.
This acquisition should increase Hanson's annual aggregates volume in the USA by
around 15% and reinforces Hanson's position as one of the leading US aggregates
producers. The acquisition is expected to be earnings enhancing for Hanson in
the first full year of ownership and will be financed from existing borrowing
facilities.
Jim Kitzmiller, President of Hanson Aggregates North America, commented: "This
is an important acquisition for Hanson, taking us into Illinois for the first
time and extending our presence in Indiana. Adding Material Service's people and
assets to our group provides new and exciting opportunities for further
development in the north central US area."
Alan Murray, Chief Executive of Hanson PLC, added: "Material Service has a long
history as a premier construction materials company. This acquisition
strengthens our US footprint and reinforces our position as one of the leading
aggregates producers in the USA."
Inquiries: Nick Swift / Hilary Reid Evans
Hanson PLC
Tel: +44 (0)20 7245 1245
Notes:
1. Hanson is one of the world's leading heavy building materials
companies. It is the largest producer of aggregates - crushed rock, sand and
gravel - and one of the largest producers of concrete products, clay bricks and
ready-mixed concrete in the world. Its other principal products include asphalt
and concrete roof tiles and its operations are in North America, the UK,
Australia, Asia Pacific and Continental Europe.
2. Hanson operates through six divisions: Hanson Aggregates North America,
Hanson Building Products North America, Hanson Aggregates UK, Hanson Building
Products UK, Hanson Australia & Asia Pacific and Hanson Continental Europe.
3. Register for Hanson's e-mail distribution service for press releases
and notification of the publication of corporate reports via www.hanson.biz.
4. High-resolution Hanson images for editorial use are available from
www.hanson.biz and from www.pixmedia.co.uk/30/company.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorised.
HANSON PLC
By:
/s/ Graham Dransfield
Date: March 02, 2006