Heidelberg Materials expands its footprint in Australia

Heidelberg Materials

asphalt, concrete, Heidelberg Materials,

Heidelberg Materials Australia has agreed to acquire the construction materials business of Maas Group Holdings.

Heidelberg Materials Australia has agreed to acquire the construction materials business of Maas Group Holdings, an ASX-listed diversified industrial group which is a leading supplier of aggregates, ready-mixed concrete, and asphalt based in Eastern Australia.

The transaction includes 40 quarries with combined reserves of over 350 million tonnes, 22 concrete plants, two asphalt operations, and a recycling site.

The aim is to complement Heidelberg Materials’ existing footprint in the core market of Australia; the acquisition further expands its high-quality product offering in Eastern Australia

Heidelberg Materials Australia has entered into a binding agreement to acquire the construction materials business of Maas Group Holdings, a diversified industrial group listed on the Australian Securities Exchange (ASX).

Maas’s construction materials business is based across New South Wales, Queensland, and Victoria and employs over 1,000 people. The transaction includes 40 quarries with combined reserves of over 350 million tonnes, 22 ready-mixed concrete plants, two asphalt operations, a recycling site as well as adjacent activities.

The transaction reflects a total enterprise value of AUD1.7 billion on a cash and debt free basis. The purchase price implies an EBITDA multiple of 8.4x after synergies based on the expected proforma
EBITDA for the next twelve months after completion.

“This acquisition is part of our growth focus combined with a disciplined approach to continuously
optimise our portfolio,” said Dr Dominik von Achten, Chairman of the Managing Board of Heidelberg
Materials.

“We are taking a significant step to expand our business in Australia, focusing on further improving our aggregates capacity and concrete supply capabilities in a core market. This reflects our commitment to a pure-play strategy as a leading global heavy building materials company in the industry.”

“With this acquisition, we will enhance our position in Australia, driving further growth and promoting
circularity. We are complementing our market presence in attractive regions while leveraging
substantial synergies. Our growing base of customers along the Eastern Seaboard will particularly
benefit from an expanding network of aggregates, asphalt, and ready-mixed concrete sites delivering
high-quality, sustainable products,” said René Aldach, Chief Financial Officer of Heidelberg Materials
and responsible for Australia.

“At the same time, we are creating significant value for Heidelberg Materials, adhering to our disciplined financial M&A framework.”

The transaction remains subject to regulatory approvals, including from the Australian Competition
and Consumer Commission and the Foreign Investment Review Board, together with other customary
conditions, such as Maas Group’s shareholder approval.

Further financial terms will not be disclosed. Subject to approval and satisfaction of these conditions, the parties expect to complete the transaction in the second half of 2026.

Source: Heidelberg Materials Media Release

What Heidelberg Materials’ Expansion Means for Australia’s Construction Materials Market

Heidelberg Materials’ acquisition of Maas Group’s construction materials business marks one of the most significant consolidation moves in Australia’s heavy building materials sector in recent years.

The key question for the industry: Does this create serious new competition for Boral? Short answer: yes. But the implications are more nuanced than a simple rivalry.

What Has Changed?

With the acquisition, Heidelberg Materials strengthens its position across:

  • Aggregates (quarries)
  • Ready-mix concrete
  • Asphalt
  • Recycling operations

The assets are concentrated in New South Wales, Queensland and Victoria, the same core eastern seaboard markets where Boral maintains a dominant presence.

This increases Heidelberg’s operational scale, logistics reach and production capacity in direct overlap with Boral’s footprint.

Why This Matters

Australia’s infrastructure pipeline remains substantial across transport, urban development and energy projects. Bulk materials: aggregates, asphalt and concrete, sit at the foundation of that delivery.

Scale matters in this market because:

  • Transport costs heavily influence margins
  • Proximity to project sites determines competitiveness
  • Network density improves supply reliability
  • Volume purchasing improves pricing flexibility

By integrating Maas’ operations, Heidelberg moves closer to Boral in network strength across eastern Australia.

Is This “New” Competition?

Boral and Heidelberg have long competed nationally. However, this transaction shifts the balance in specific regions.

What changes:

  • Heidelberg now has deeper regional penetration
  • Increased plant density improves delivery optionality
  • Larger combined volume improves negotiating power
  • Recycling and circular material capacity expands

In practical terms, contractors may now see stronger bidding competition in some corridors.

Pricing & Market Pressure

Greater competition at scale can lead to:

  • More competitive pricing for major projects
  • Tighter margins across the sector
  • Increased emphasis on operational efficiency
  • Differentiation through service reliability

For Tier 1 and Tier 2 civil contractors, this could mean stronger supplier leverage when negotiating bulk supply agreements. For smaller independent quarry operators, however, consolidation may increase competitive pressure.

Sustainability & Circular Economy Angle

Heidelberg has globally positioned itself around lower-carbon materials and recycling integration. If this strategy carries through locally, we may see:

  • Greater recycled aggregate use
  • Expansion of circular construction materials
  • Increased ESG-driven procurement competitiveness

This aligns with evolving government procurement standards.

What This Means for Boral

Boral remains a major national player with:

  • Deep contractor relationships
  • Established supply agreements
  • Strong brand recognition
  • Backing from Seven Group Holdings

However, Heidelberg’s expanded footprint means Boral now faces:

  • A larger, more regionally integrated competitor
  • Stronger competitive tension in eastern states
  • Potential pressure on pricing and margins

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