Eldorado Stone Leads Headwaters Into Billion-Dollar Territory

The integration of faux-stone veneer producer Eldorado Stone into its Construction Materials segment, plus strong performance in its Resources and Energy

CP STAFF

The integration of faux-stone veneer producer Eldorado Stone into its Construction Materials segment, plus strong performance in its Resources and Energy Services sectors edged Headwaters Inc., South Jordan, Utah, just past the $1 billion sales mark for FY2005. Headwaters acquired Eldorado Stone in mid-2004, and San Antonio-based Southwest Concrete Products later in the year. Along with packaged building material and two Texas concrete masonry operations, Eldorado and SCP were rolled into a new segment, Headwaters Construction Materials; its 2005 revenues totaled $520 million, versus a (pro forma) $457 million the previous year. Headwaters Resources, a key player in coal combustion product processing and the market leader in concrete-grade fly ash, saw a 17 percent revenue jump in 2005 figures over the previous year.

Headwaters Inc. reported 2005 sales of $1.065 billion, capping five consecutive years during which compounded growth rate remained in the three-digit percentage range. Another milestone for Headwaters occurred in spring 2005, when the company switched its trading from over the counter to the New York Stock Exchange. Headwaters entered concrete in 2002, acquiring ISG Resources. ISG had emerged in 1997 as a catalyst in fly ash marketer consolidation; it first acquired Atlanta-based market leader JTM, whose takeover by Lafarge North America had unraveled. A handful of smaller deals followed, ultimately positioning Headwaters with a coal combustion products portfolio whose annual shipments of concrete-grade fly ash exceed 7 million tons.

Included in the Headwaters 2006 outlook is Eldorado Stone’s rollout of a brick veneer product line at the International Builders’ Show this month in Orlando. We believe the timing is right for Eldorado to address the growing need for something new in manufactured stone, says Eldorado Stone Director of Marketing Brent Spann. By listening to what architects and designers told us they wanted, we are now prepared to give them new creative tools. Eldorado Brick gives them another vehicle from which they can express themselves more artistically. It is a natural choice for us because of its versatility, breadth of applications and use as a complimentary element with our existing stone profiles.

The brick line is uniquely its own Û almost a hybrid product that makes one rethink what brick is, the company notes. Traditional brick offers uniformity in color, size and shape. Eldorado Brick abandons uniformity by creating bricks that are highly textured and atypical when it comes to their rough and worn edges. The various thicknesses and sizes (no one brick is the same) combined with a multitude of distinctive color blends brought out by the deep textures found in each brick makes the Eldorado Brick line what product developers note is one of the most interesting and versatile new veneer offerings.

Similar to Eldorado’s architectural stone profiles, the veneer is handcrafted using precise molds Û in this case, of actual European bricks specifically selected for their exceptional shape, texture and color. Eldorado Bricks are finished by hand and tinted by trained artisans. The cost of the brick will be the same as Eldorado’s national stone profiles with a 50-year warranty. The brick profiles will be available through Eldorado-certified dealers and distributors nationwide.