Hanson plc

Heidelberg Materials UK

File:Heidelberg Materials logo.jpg
Company type	Subsidiary
Traded as	(under Hanson) Template:LSE was
Industry	Minerals
Founded	1964 (1964) originally as Hanson Trust Ltd
Headquarters	London, England
Key people	Simon Willis (Chief executive officer)
Products	Building materials
Revenue	£4,133m (2006)Template:Fix/category
Operating income	£563m (2006) Template:Fix/category
Net income	£401m (2006) Template:Fix/category
Number of employees	3,500 (2019) Template:Fix/category
Parent	HeidelbergCement
Website	heidelbergmaterials.co.uk

Heidelberg Materials UK operates as a British firm specializing in building materials, with its headquarters located in Maidenhead. Previously named Hanson UK, it has been under the ownership of the German company HeidelbergCement since August 2007. Hanson was once publicly traded on the London Stock Exchange and was included in the FTSE 100 Index.

The business began as Wiles Group before being restructured into Hanson Trust Ltd in 1964 by founders James Hanson and Gordon White. Throughout the following thirty years, Hanson concentrated on boosting shareholder value primarily through a strategy of aggressive acquisitions. Significant purchases in the 1980s included United Drapery Stores (1983), Imperial Tobacco (1986), and Kidde (1987). Some of these acquisitions attracted criticism and resistance. In 1991, Hanson made an attempted hostile takeover of Imperial Chemical Industries (ICI), which met with strong opposition and ultimately did not succeed.

By the early 1990s, Hanson had expanded to become one of the largest conglomerates in Britain. However, as investor sentiment shifted against conglomerates, the company reorganized during the mid-1990s into four distinct publicly traded entities: Hanson plc, Imperial Tobacco, The Energy Group, and Millennium Chemicals. In 2007, Hanson Plc was purchased by HeidelbergCement for £8 billion, creating the world's second-largest cement and building materials enterprise. The company adopted its current name, Heidelberg Materials, in October 2023.

Expansion via acquisitions

Established in 1964 as Hanson Trust plc by James Hanson and Gordon White from the former Wiles Group, the company pursued aggressive strategies aimed at maximizing value, including extensive job cuts that led to accusations of asset stripping. From 1979 onward, Hanson delivered robust returns to shareholders and gained political favor; James Hanson was awarded a life peerage by Prime Minister Margaret Thatcher in 1983. There were claims that political connections influenced regulatory outcomes.

One significant acquisition was Hanson's 1983 purchase of United Drapery Stores (UDS), which owned notable British retail chains such as John Collier and Richard Shops. To finance this deal, Hanson dismantled UDS by divesting several divisions while retaining key department stores. In January 1986, Hanson acquired American chemical and typewriter manufacturer SCM with plans for restructuring to enhance profitability.

The largest acquisition made by Hanson was the £2.5 billion takeover of Imperial Tobacco in 1986. Subsequent divestments generated £2.3 billion, effectively leaving a highly profitable tobacco operation at a minimal net cost. That same year, the food brand Golden Wonder was sold to Dalgety plc. Additionally, Hanson supported a successful government-backed bid for British aerospace company Westland Helicopters.

In mid-1987, Hanson acquired American consumer goods firm Kidde for $1.7 billion but faced criticism following declines in its stock price. Later in November 1988, it purchased mining company Consolidated Gold Fields for £3.5 billion.</ref>

In 1991, Hanson initiated a hostile bid for the struggling industrial giant ICI, acquiring a 2.8% share but encountering strong resistance; this attempt was abandoned within the year amid considerable controversy over its scale.

Also in September 1991, Hanson acquired British homebuilder Beazer for $609 million, followed by a £116 million purchase of part of Watt Housing Corporation in 1993.

By the mid-1990s, investor enthusiasm for conglomerates had diminished significantly. Some manufacturing assets were spun off as US Industries in February 1995. In January 1996, Hanson dismantled its diversified corporate structure by splitting into four publicly listed companies: Hanson plc, Imperial Tobacco, The Energy Group, and Millennium Chemicals. This reorganization reportedly incurred professional fees totaling £95 million by August 1996.

Focus on building materials

Lord Hanson relinquished his role as chairman in December 1997. Under the leadership of Andrew Dougal, who served as chief executive from 1997 until 2002, the company concentrated its efforts on building materials. By the end of 1999, Hanson had established itself as the largest supplier of aggregates worldwide and ranked second in ready-mixed concrete supply. In November 1999, Hanson expanded by acquiring the Australian building materials firm Pioneer International.

In early 2002, Dougal departed from Hanson amid controversy over his severance package, which was reported to range between £400,000 and £660,000, in addition to a pension enhancement amounting to £636,700.

HeidelbergCement acquisition

In May 2007, HeidelbergCement revealed its intention to purchase Hanson Plc at £11 per share, valuing the transaction at around £8 billion. This merger positioned the combined entity as the world's second largest cement and building materials company. The acquisition was finalized on 22 August 2007 through Heidelberg’s subsidiary Lehigh UK. Subsequently, in December 2014, Heidelberg Cement divested its Hanson Building Products segment to private equity firm Lone Star for £900 million.

By 2023, Hanson announced plans to develop a new carbon capture installation designed to lower emissions from their Padeswood cement works. The British government selected Hanson among a group of companies invited to present their strategies for carbon reduction progress.

In October 2023, the company underwent a rebranding initiative, adopting the name Heidelberg Materials to align with its parent company's brand consolidation efforts.

Operations

Heidelberg Materials UK predominantly caters to major metropolitan regions across England, Wales, and Scotland’s central belt. The firm provides essential heavy building supplies such as ready-mixed concrete, asphalt, and cement to the construction industry within the UK.

In March 2024, residents of Glyncoch near Pontypridd in South Wales staged protests against Minister of Climate Change Julie James’s decision to override local objections and approve an extension of quarrying activities. This extension authorizes extraction of an additional 15.7 million tonnes of rock intended for road surfacing and runway construction, with operations expected to continue until 2047. The quarry expansion will come within 164 meters of schools and residential areas while affecting community green spaces and a wildlife sanctuary.

The appeal report indicated that dust evaluations forecasted only minor negative effects and found no objections relating to landscape impact, ecological concerns, water management, cultural heritage preservation, or agricultural land quality.

See also

• Hanson Cement
• Heidelberg Materials
• Hanson plc
• Mineral Products Association
• Ready-mix concrete