In 1964 Hanson Trust was created out of the former Wiles Group by James Hanson and Gordon White. Hanson PLC went on to become one of the world's largest companies with annual profits of more than £1.5 billion and a strategy of growth through acquisition.
In the 1970s and 80s Lords Hanson and White turned Hanson into a multi-national concern with interests across the world ranging from chemical factories in the US to electricity supply in the UK and gold mines in Australia. Hanson produced cigarettes and batteries, timber and toys, golf clubs and Jacuzzis, cod liver oil capsules and cranes.
During this period, among the companies that were acquired, several still form the core of Hanson's UK business today:
- 1969: Butterley Brick
- 1984: London Brick
- 1988: ARC
In January 1996 the decision to demerge the business into four separate companies was taken. Imperial Tobacco, The Energy Group and the US chemicals business, Millennium, subsequently became quoted companies in their own right. Hanson's strategy was to change from a diversified industrial conglomerate into a focused heavy building materials business.
The major building materials companies remaining within Hanson were ARC, Hanson Brick and Cornerstone.
From 1997-2000 the Hanson board undertook the substantial changes required to deliver the new strategy. The remaining non-core businesses were sold. Considerable sums were spent on acquisitions to build up the existing businesses and capital investment on plant upgrades was stepped up to improve efficiency and reduce costs. In the UK acquisitions included:
- 1999 :F C Precast
- 1999: Albion Concrete
- 2000: Birchwood Concrete
- 2000: Supamix
Early in 1999, to highlight the fact that Hanson was now a unified company, the names of all the operating companies were changed to Hanson. ARC became Hanson Quarry Products Europe; Cornerstone - Hanson Building Materials America and Hanson Brick - Hanson Bricks Europe.
Acquisitions continued, particularly in the US, and the company was developed into a global player with the acquisition in May 2000 of the Australian construction materials business Pioneer International.
In January 2002 Hanson created an integrated housebuilding materials business in UK by combining Hanson Concrete Products with Hanson Brick. This new housebuilding materials company, Hanson Building Products, has continued to expand through value adding acquisitions and green field site investments. It aims to be the UK's largest building product manufacturer and offer its customers the full range of heavy building materials required to build a house.
Acquisitions have included:
- 2004: Wilnecote Brick (formerly Tarmac Brick)
- 2005: Hanson Clay Products (formerly Marshalls Clay Products, The Acrington Brick Company/ NORI)
- 2005: Thermalite (the number one producer of Aircrete Block)
- 2005: Mid Essex Gravels
- 2006: Redbank
Hanson continued to review its operations with the principal objective of streamlining administration, reducing overheads and improving customer service by creating a more integrated building materials business.
Hanson's UK sea-dredged aggregates business, which was previously included within the Continental European operations, was integrated into Hanson Aggregates UK.
In 2004, Hanson Aggregates acquired Cumbrian Industrials Limited, a road surfacing and civil engineering business. In it added Civil Marine (Holdings) Limited, a manufacturer of ground granulated blast furnace slag, which is used as a cement replacement in precast and ready-mixed concrete..
Hanson's overall strategy remains unchanged. It is reinforcing its continued focus on cost and margin control, together with disciplined and proactive growth via capex and bolt-on acquisitions.
The management of Hanson will continue to develop and improve the business with the intention of delivering long-term value for its shareholders.
