Vulcan Materials to Merge with US Concrete

TUESDAY, JUNE 15, 2021


Construction aggregate company Vulcan Materials recently announced that it has entered into a definitive merger agreement with U.S. Concrete, Inc., a producer of aggregates as well as ready-mixed concrete.

Under the terms of the agreement, Vulcan will acquire all of the issued and outstanding shares of U.S. Concrete common stock for a purchase price of $74 per share, which represents a total equity value of $1.294 billion.

The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the second half of 2021, subject to shareholder approval, regulatory clearance and other customary closing conditions.

According to Vulcan, U.S. Concrete is seen as complementary to the company’s existing footprint with 27 aggregates operations serving California, Texas and the Northeast, that shipped 12.6 million tons in 2020.

“U.S. Concrete is an important Vulcan customer in a number of key areas, and this transaction is a logical and exciting step in our growth strategy as we further bolster our geographic footprint,” said Tom Hill, Chairman and CEO of Vulcan Materials Company.

“Ronnie Pruitt and his team have done an excellent job growing and operating its business, and we look forward to welcoming the U.S. Concrete employees to the Vulcan family. This is a merger of two corporate cultures that value people, technology, operating disciplines, customer service and the entrepreneurial spirit, and it positions Vulcan to further drive sustainable, long-term shareholder value.”

The transaction also provides strategically oriented ready-mixed concrete operations that will expand Vulcan's service capabilities.  Other highlights include:

  • Complements Vulcan's existing aggregates business in California with access to blue-water source of aggregates reserves;
  • Enhances Vulcan's position in Texas growth areas;
  • Expands Vulcan's aggregates footprint, including in the New York and New Jersey metropolitan areas;
  • Expects to increase Vulcan's EBITDA by approximately $190 million before synergies; and
  • Expects to be accretive to Vulcan's earnings per share in the first full year following closing.

“Today's announcement that we are combining with Vulcan, a leading producer of construction aggregates, marks a major milestone in U.S. Concrete's history. We are proud of the work our team has accomplished over the past few years to achieve operational excellence and serve our customers and believe combining with Vulcan will provide us with the opportunity to build on our progress,” said Ronnie Pruitt, President and CEO of U.S. Concrete.

“Our combined organization will share an extensive and successful track record of acquisitions and greenfield development, and we look forward to working with Tom and the entire Vulcan family to close this transaction and integrate our two strong businesses.”

   

Tagged categories: Acquisitions; Business matters; Good Technical Practice; Mergers; NA; North America

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