A Further Building Block for Livingstone
March 2005
Thermalite, the UK’s largest manufacturer of aerated lightweight concrete blocks has been sold to Hanson plc for cash consideration of £120million, following a tightly controlled auction conducted by Livingstone.
The vendor was Etex Group SA, the privately-owned Belgian construction materials group which acquired the Thermalite business as part of its acquisition of Marley plc in 1999. Thermalite has since become the UK market leader in the supply of lightweight, environmentally friendly aircrete block products for use in foundations, walls and floors of residential, commercial and industrial buildings.
Thermalite has annual production is in excess of 1 million cubic metres, with a UK market share of over 30%. In 2004, Thermalite generated EBITDA of £17.7 million and employs 390 people.
Livingstone Director, Alex Sheffield comments: “Thermalite is the market leader in a sub sector of the heavy building materials market that is well positioned for significant future growth. It is a highly attractive asset that generated strong interest from potential purchasers in Britain and overseas. It was perhaps no surprise that the highest bid came from Hanson plc, one of the world’s largest producers of concrete products, with significant operations in the UK via its Hanson Building Products subsidiary.”
For Ken Sharp, Group Finance Director at Etex, the deal represented the renewal of an acquaintance with Livingstone – but this time they were on the same side of the table. He says: “I first came across the firm in 2002 when we acquired a fire protection business from Cape plc. Livingstone were acting for the vendors and I decided at the time that if ever the right opportunity presented itself, I would want to work with them. When we decided to dispose of Thermalite they were my first choice.”
He added: “My confidence had not been misplaced: I am extremely pleased with the manner in which Livingstone handled the marketing exercise, and its entire performance throughout the transaction.”
Livingstone Partner, Simon Cope-Thompson adds: “We are delighted to have been invited to assist Etex with the sale process. This deal is another example of the consolidation taking place within the construction products industry.”
Livingstone’s Construction Products team has completed ten such transactions in the last couple of years, including the sale of Woodhall Spa Sand & Gravel to Aggregates Industries plc in 2004.
For further information contact:
Simon Cope-Thompson
T: +44 20 7484 4706
E: sct@livingstonepartners.co.uk
Alex Sheffield
T: +44 20 7484 4734
E: sheffield@livingstonepartners.co.uk
