Key step toward digitalization: HeidelbergCement partners with leading software investment firm Thoma Bravo and invests in Command Alkon to build the digital ecosystem for the Heavy Building Materials industry
HeidelbergCement announces minority investment in Command Alkon, the global leader in comprehensive supply chain technology solutions for heavy building materials
Leading software investment firm Thoma Bravo will retain the majority ownership of Command Alkon with plans to further accelerate its growth
Combining Command Alkon's strong and innovative product offerings, Thoma Bravo's extensive software and operational expertise, and HeidelbergCement's deep domain knowledge and global footprint expected to drive digital advancement for the Heavy Building Materials industry
Investment and partnership to benefit all Command Alkon customers by accelerating the company's ability to scale its best-in-class, cloud-based solutions across the heavy building supply chain
HEIDELBERG, Germany, BIRMINGHAM, Ala. and SAN FRANCISCO—HeidelbergCement, one of the world's largest integrated manufacturers of building materials and solutions, and Command Alkon, the global leader in comprehensive supply chain technology solutions for heavy building materials, announced today that as part of a new partnership with Thoma Bravo, a leading software investment firm, HeidelbergCement has signed an agreement to make a minority investment to acquire 45% in Command Alkon. Thoma Bravo will retain the majority ownership of Command Alkon.
Since acquiring Command Alkon in 2020, Thoma Bravo has helped guide the company to expand its solutions portfolio as well as modernized and centralized its systems and organizational structure to enhance the customer experience. As a group, Thoma Bravo, HeidelbergCement and Command Alkon expect to continue to accelerate Command Alkon's strategy to deliver best-in-class, cloud-based solutions to better serve its customers. The addition of HeidelbergCement's global reach and product adoption will further enable Command Alkon to scale its solutions and drive growth.
HeidelbergCement and Command Alkon believe through each company's efforts, as well as continued collaboration with stakeholders globally, they can help advance digital transformation within the heavy building materials supply chain sector, including more transparent industry standards for seamless connectivity, improved solutions to customers' everyday pain points (e.g., digital ticketing or Telematics), a generally increased pace in innovation, and an acceleration to customers' sustainability efforts. HeidelbergCement will continue to autonomously own and develop HConnect, its proprietary digital product suite with more than 18,000 customers.
"As part of our strategy "Beyond 2020", our clear goal is to become the first industrial tech company in our sector," said Dr. Dominik von Achten, Chairman of the Managing Board of HeidelbergCement. "We have made significant progress in our independently developed HConnect digital customer experience since its development in 2018. The investment in Command Alkon and the partnership with Thoma Bravo now allows us to monetize the hidden potential of our assets and translate it into a new growth path for HeidelbergCement. Together, we will build the digital ecosystem of the future for the Heavy Building Materials industry."
"This partnership is a unique opportunity to accelerate digital change across the heavy building materials supply chain," said Phil Ramsey, CEO at Command Alkon. "HeidelbergCement is a leading industry player, and their investment is a validation of our strategy, solutions and the outstanding customer experience we offer. This transaction will better position Command Alkon to enhance our support to all customers, expand our geographic footprint and execute our transition to the cloud. We look forward to continuing to benefit from our partnership with HeidelbergCement and Thoma Bravo as we continue to provide automation and business process technologies that deliver value to our customers and stakeholders across the construction industry."
"We are so excited to partner with HeidelbergCement, who is the clear industry leader in terms of digital transformation, to further support Command Alkon's growth strategy and transform the heavy building materials industry," said A.J. Rohde, a Senior Partner at Thoma Bravo. "This is our most significant partnership with a global industrial company, and one that we believe will have a lasting positive impact on the sustainability and ease of doing business within the heavy building material sector. The goal when we acquired Command Alkon was to modernize the company's platform, build a digital ecosystem from production to consumption, and expand its global footprint. This investment and industry-changing partnership from HeidelbergCement will help accelerate all of those initiatives even faster for the benefit of all Command Alkon customers."
Command Alkon has the largest installed software base in the heavy building materials supply chain sector with more than 2,500 customers globally. Its comprehensive product portfolio includes software and technology for plant and site automation, materials ordering and scheduling, inventory and mix management, trucking logistics and fleet optimization, office and field operations, reporting, and analytics. More than 1,000 companies use Command Alkon's CONNEX platform connecting all participants across the heavy building materials supply chain – suppliers, haulers, and buyers — to empower sharing of data and digital workflows across all parties at cloud scale and make it simpler and easier for customers to do business, improve stakeholder efficiencies, and encourage greater sustainability.
The purchase agreement is subject to customary regulatory approvals, which are expected to be obtained by the end of 2021.
About HeidelbergCement
HeidelbergCement is one of the world's largest integrated manufacturers of building materials and solutions, with leading market positions in aggregates, cement, and ready-mixed concrete. Around 53,000 employees at more than 3,000 locations in over 50 countries deliver long-term financial performance through operational excellence and openness for change. At the center of actions lies the responsibility for the environment. As forerunner on the path to carbon neutrality, HeidelbergCement crafts material solutions for the future. For more information, visit www.heidelbergcement.com.
About Command Alkon
Command Alkon offers technologies that automate and streamline all aspects of the heavy building materials supply chain for materials suppliers, haulers, and buyers. A comprehensive suite of industry-specific solutions combined with employees invested in the success of heavy materials operations and construction projects differentiates Command Alkon as an industry leader and go-to partner. CONNEX, a supply chain platform built for the industry, enables business partners to digitize and integrate workflows for materials and trucking management and capture powerful insights that drive performance. Command Alkon is headquartered in Birmingham, Alabama and has offices in locations around the globe. For more information, visit www.commandalkon.com.
About Thoma Bravo
Thoma Bravo is one of the largest private equity firms in the world, with more than $83 billion in assets under management as of June 30, 2021. The firm invests in growth-oriented, innovative companies operating in the software and technology sectors. Leveraging the firm's deep sector expertise and proven strategic and operational capabilities, Thoma Bravo collaborates with its portfolio companies to implement operating best practices, drive growth initiatives and make accretive acquisitions intended to accelerate revenue and earnings. Over the past 20 years, the firm has acquired more than 325 companies representing over $100 billion in enterprise value. The firm has offices in Chicago, Miami and San Francisco. For more information, visit thomabravo.com.
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