Maas Group (ASX: MGH) entered into a definitive share sale deed to divest its Construction Materials division to Heidelberg Materials Australia for a total consideration of up to $1.70 billion.
The strategic move represents a significant valuation premium for the group, surpassing recent comparable transactions within the sector and reflecting the robust health of MGH’s underlying assets.
The deal structure includes a base price supplemented by $120 million in contingent cash consideration, which is tied to specific post-completion operational and commercial milestones.
While the CM division changes hands, MGH will strategically retain ownership of certain freehold land, which will be leased back to HMA under long-term commercial arrangements, ensuring a steady secondary revenue stream.
The transition is expected to be seamless for the workforce, with roughly 1,140 employees transferring to HMA.