Acquisition of largest fly ash recycling company in the US and continued portfolio optimization
HEIDELBERG Materials have entered into a definitive purchase agreement to acquire The SEFA Group Inc., the largest fly ash recycling company in the US. Based in Lexington, South Carolina, the operations of The SEFA Group include five business units, five utility partners, 20 locations, and more than 500 employees. Both parties have agreed to not disclose the financial terms of the transaction, which is anticipated to close in June 2023.
The SEFA Group currently supply quality fly ash to more than 800 concrete plants in 13 states. The reuse of fly ash from energy generation as a secondary cementitious material will help reduce the CO2 intensity of concrete, strengthening circularity within Heidelberg Materials’ value chain.
‘Fostering circularity by increasing the use of by-products and recycled materials from other industrial sectors is an essential part of our strategy,’ said Dr Dominik von Achten, chairman of the managing board of Heidelberg Materials. ‘Our focus is on rapidly and significantly reducing our CO2 emissions and The SEFA Group will make an outstanding contribution in this regard to our US business.’
‘The acquisition of The SEFA Group will further strengthen our cementitious footprint in the fast-growing south-eastern US market,’ added Chris Ward, president and chief executive officer of Heidelberg Materials North America. ‘We welcome the addition of this innovative business and its talented employees to Heidelberg Materials as we grow our portfolio of sustainable products, technologies, and customer-focused solutions on the path to Net Zero.’
For more than 40 years, The SEFA Group have focused on providing a reliable supply of quality fly ash for the ready-mixed concrete industry and provide technology and services to the construction materials and other industrial sectors. They have developed the most advanced technology to treat ash from storage ponds and currently process about 1 million tonnes of pond ash per year.
Meanwhile, Heidelberg Materials have recently closed the divestment of their Eastern European joint venture in Georgia. The company previously held a 45% participation in CaucasusCement Holding BV (CCH), the parent company of HeidelbergCement Georgia Ltd and Terjola Quarry Ltd, Tbilisi.
Heidelberg Materials sold their share to their long-term joint-venture partner Cement Invest BV, an investment company jointly managed and owned by the Georgian Co-Investment Fund and Hunnewell Partners. The joint venture’s scope included two integrated cement plants, 14 ready-mixed concrete plants, and two aggregates plants. The partners agreed to not disclose the financial terms of the transaction.
Heidelberg Materials say these latest steps reflect their continued focus on simplifying their country portfolio and positioning the company as front runner on the path to Net Zero and circularity in the building materials industry.