BIRMINGHAM, Ala. (WIAT) — Vulcan Materials Company, a Birmingham-based company that makes construction aggregates, will soon gain control of a major concrete company.
On Monday, Vulcan and U.S. Concrete Inc. announced they had entered into a merger agreement where Vulcan would acquire all of U.S. Concrete’s issued and outstanding shares of its common stock for a purchase price of $74 per share in cash, representing a total equity value of nearly $1.3 billion.
U.S. Concrete has 27 aggregates operations serving California, Texas and the Northeast that shipped 12.6 million tons in 2020. 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 high quality aggregates reserves;
- Enhances Vulcan’s position in key Texas growth areas;
- Expands Vulcan’s aggregates footprint, including in the attractive New York and New Jersey metropolitan areas;
- Expected to increase Vulcan’s EBITDA by approximately $190 million before synergies; and,
- Expected to be accretive to Vulcan’s earnings per share in the first full year following closing.
“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,” Vulcan CEO Tom Hill said in a written statement. “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.”
Ronnie Pruitt, president and CEO of U.S. Concrete, released the following statement to accompany the announcement:
“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. 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.”
The deal is expected to close in the second half of the year, subject to U.S. Concrete shareholder approval, regulatory clearance, and other customary closing conditions.