Hanson (company)

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Hanson Limited
Limited company
Industry Minerals
Founded 1964 as Hanson Trust Ltd
Headquarters London, England
Key people
Daniel Cooper (CEO)
Products Building materials
Revenue £4,133m (2006)
£563m (2006)
£401m (2006)
Owner HeidelbergCement
Number of employees
25,400 (2006)
Website hanson.co.uk

Hanson Limited, formerly Hanson Trust plc, is a British based international building materials company, headquartered in Maidenhead. The company has been a subsidiary of the German company HeidelbergCement since August 2007, and was formerly listed on the London Stock Exchange and a constituent of the FTSE 100 Index.

History

Hanson was built up by James Hanson, later Lord Hanson, and Gordon White, later Baron White of Hull, who set up Hanson Trust in 1964.[1] Their policy was to purchase under-performing assets and make them a source of profit.

Hanson and White were willing to take a wide range of measures to do so, including mass redundancies, and therefore attracted opposition and accusations that they were "asset strippers",[2] but from 1979 the company was successful from the shareholders' point of view and respected during the early 1980s, with Hanson (who gave millions of pounds to the Conservatives) admired by Margaret Thatcher.[3]

One of the most notable takeovers, at least to the general public, was the acquisition in 1983 of the United Drapery Stores,[2] or UDS Group, which owned many of Britain's most well known high street clothes shops and department stores, including John Collier, Richard Shops and the chain of Allders department stores. To fund this purchase, Hanson broke up UDS and sold John Collier to a management buy out team, and Richard Shops to Habitat, keeping only the core department store business.

The Hanson cement works in Ketton

In January 1986, Hanson bought SCM, an American chemicals to typewriters business. This included the paper division that was formerly the Allied Paper Corporation. Hanson sold most of the SCM business units and the headquarters building in New York City for a significant profit.[4]

Its most significant single purchase, however, was probably its takeover of Imperial Tobacco Group in 1986.[2] Hanson paid £2.5 billion for the group then undertook a major reorganisation; divestitures netted £2.3 billion, leaving Hanson with the hugely profitable tobacco business for "next to nothing."[2] Hanson sold off the food brand, Golden Wonder, to Dalgety plc in 1986.[5]

In November 1988, Hanson went on to buy Consolidated Gold Fields for £3.5bn.[2] The Gold Survey was taken on by a new company, now known as GFMS. An attempt in September 1991 to purchase Imperial Chemical Industries, once seen by many in Britain as the nation's leading company but then in decline, was highly controversial, and ended in failure.[2] Hanson did secure the takeover of Beazer, a major housebuilder, that year.[6]

By the mid 1990s, conglomerates were no longer popular with the investment community. Some of the manufacturing businesses were spun off as US Industries in February 1995.[7] In January 1996, Hanson ended its time as a diversified conglomerate by breaking itself up into four separate listed companies: Hanson plc, Imperial Tobacco, The Energy Group and Millennium Chemicals.[1] This deal cost Lord Hanson £95 million by August 1996.[8]

Lord Hanson stepped down as chairman in December 1997.[2] Led by Andrew Dougal, chief executive from 1997 until 2002,[9] Hanson focused on building materials, becoming the world's biggest aggregates supplier and the second largest supplier of ready-mixed concrete.[10] In November 1999, Hanson acquired Australian building materials business Pioneer International.[11]

Dougal quit the group in early 2002 to "rebalance" his life, leaving with a controversially large pay-off (variously reported at between £400,000 and £660,000, plus a pension top-up of £636,700).[12][13][14]

In May 2007, HeidelbergCement announced its intent to purchase Hanson PLC for £11 per share, a deal worth approximately £8 billion.

This deal made the combined company the second largest cement and building materials company in the world. The transaction was completed through Heidelberg subsidiary Lehigh UK on 22 August 2007.[15] In December 2014, Heidelberg Cement agreed to sell its Hanson Building Products division to the private equity firm Lone Star for £900 million.[16]

Operations

Hanson's two largest markets are the United Kingdom and the United States, and it is also active in many other countries. It is the world's leading producer of aggregates (particles of rock, gravel and sand), and a major producer of bricks and concrete pipes.

References

  1. ^ a b Hanson: History
  2. ^ a b c d e f g "ACTUAL ARTICLE TITLE BELONGS HERE". 
  3. ^ Cowe, Roger (2 November 2004). "Lord Hanson". The Guardian. 
  4. ^ Pratley, Nils (2 November 2004). "Legacy of the lord with the Midas touch". The Guardian. 
  5. ^ "Golden Wonder timeline". Financial Times. Retrieved 4 August 2014. 
  6. ^ "Hanson to Buy Beazer In $609 Million Deal". The New York Times. 17 September 1991. Retrieved 7 April 2012. 
  7. ^ Stevenson, Richard W. (23 February 1995). "Hanson Plans Spinoff of 34 U.S. Companies". The New York Times. 
  8. ^ "Hanson faces pounds 95m bill for breaking up". The Independent. 28 August 1996. Retrieved 8 November 2017. 
  9. ^ "Andrew Dougal, non-executive director". Carillion. Retrieved 17 January 2018. 
  10. ^ "On aggregate, Hanson is a buy". The Guardian. 10 December 1999. Retrieved 17 January 2018. 
  11. ^ News, Bloomberg (29 November 1999). "Hanson Seeks to Buy Australian Concern". The New York Times. 
  12. ^ Osborne, Alistair (20 April 2002). "Hanson stands by chief's huge payoff". The Daily Telegraph. Retrieved 17 January 2018. 
  13. ^ Cope, Nigel (12 March 2003). "Ex-Hanson chief gets £660,000 plus pension top-up". Independent. Retrieved 17 January 2018. 
  14. ^ Withers, Malcolm (19 April 2002). "Protest at Hanson chief's pay-off". ThisIsMoney.com. Retrieved 17 January 2018. 
  15. ^ Editor, By Richard Blackden, Online City. "Heidelberg to buy Hanson for £8bn". 
  16. ^ "UK brick maker Hanson sold by German owner for £900m". The Telegraph. 24 December 2014. Retrieved 30 January 2015. 

External links

  • Official website
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