Texas Growth Fund acquires Hanson units

The Texas Growth Fund has agreed to acquire the ready-mixed concrete business of UK-listed group for an undisclosed sum

(PrivateEquityCentral.net) Austin, Texas-based Texas Growth Fund announced it acquired the ready-mixed concrete business of UK-listed Hanson plc.

 

Terms of the deal were not disclosed, according to a press release. The company will be renamed Southern Star Concrete.

 

Southern Star Concrete includes 60 concrete plants and 600 mixers trucks, making it the largest ready-mixed concrete business in the region. The company generates $300m in annual revenue. The company provides concrete to Texas and Arkansas.

 

“We have a good understanding of the construction and building materials markets and consider this to be a very attractive business that we’ve acquired at a favorable point in the construction cycle,” Barry Twomey, a member of TGF Management, said in the statement. “We are extremely pleased to be backing such a highly experienced management group in this transaction.”

 

In January, the Texas Growth Fund participated in a $41m round of financing for the merger of Birch Telecom, a provider of local and long-distance telephone services, and Ionex Telecom, which provides local and long-distance phone service, high-speed Internet access, and voice and data products, that also included Gilbert Global Equity Partners, AEA Investors and Veronis Suhler Stevenson.

 

The Texas Growth Fund is managed by TGF Management Corp. The fund, which has $577m in capital commitments from Texas public pensions and endowments, provides equity and mezzanine capital for companies with operations in Texas.