Heidelberg Materials Australia has made a major play to expand its presence in Australia after announcing a significant agreement with Maas Group Holdings.
The agreement sees Heidelberg Materials Australia set to acquire the construction materials business of Maas Group Holdings, which includes several assets with 40 quarries, 22 concrete plants, two asphalt operations and a recycling site. According to HMA, the quarries have combined reserves of more than 350 tonnes.
Under the agreement, Maas Group would retain certain freehold land and lease it to HMA. More than 1000 construction materials business employees would also transfer from Maas Group to Heidelberg Materials Australia.
According to an MGH announcement lodged with the ASX, the deal is for a cash consideration of $1.703 billion, including $120 million in contingent cash consideration, linked to certain operational and commercial milestones being met post-completion.
“The acquisition of Maas’ construction materials division reflects our ongoing commitment to delivering consistent, high-quality products and services to customers across Eastern Australia,” Heidelberg Materials Australia chief executive Phil Schacht said.
“Maas’ strong reputation and regional expertise complement our business, and we’re looking forward to welcoming the team as we continue delivering reliable sustainable materials to our customers.”
The deal is expected to close in the second half of 2026 subject to approvals being granted including approval from the Maas Group Holding shareholders and the ACCC and FIRB.
“We are extremely proud of the construction materials business that we have built over many years. The scale, quality and performance of [construction materials business] are a testament to the hard work and commitment of our people, and it is reflected in the value being recognised by Heidelberg Materials,” Maas Group Holdings chief executive officer and managing director Wes Maas said.
“This transaction allows MGH to crystallise value from a high-quality asset while positioning the group towards the next phase of infrastructure investment, including digital infrastructure, electrification and AI-enabled assets.
“The sale enables a strategic re-focus and disciplined redeployment of capital into areas where we see strong structural tailwinds.”
The Maas Group Holdings’ board has already indicated it believes the deal is in the shareholders’ best interests with a general meeting set to be held at a future date.
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