Blue Circle steps into Canada
15 Jan 2000
Cement producer Blue Circle is poised to expand across the Atlantic after agreeing to buy St Mary's Cement Corporation, based in Ontario, Canada. Although the deal had not been finalised as PE went to press, the companies have signed a letter of intent, and a purchase price of around £200million is believed to be under discussion.
St Mary's, a family-owned business, boasts 2.3million tpa of cement capacity at two plants in Ontario, and 1.2million tpa of grinding capacity near Detroit. Sales are split between the domestic market and exports into the US, but the firm provides about a quarter of Ontario's cement requirements. These are set to rise steeply as the improving Canadian economy fuels an upturn in the construction industry.
