Summit Materials Sells Hinkle to CRH Americas Materials, Reports Q1 Net Loss

Summit Materials Inc of Denver, CO has announced the divestiture of Kentucky-based Hinkle Contracting Co to an affiliate of CRH Americas Materials, a subsidiary of CRH plc of Ireland.

Anne Noonan, Summit’s CEO, commented, “Hinkle was among Summit’s early acquisitions and an integral part of the company’s foundational growth. Moving forward we are pleased to have reached a mutually beneficial transaction with CRH Americas for Hinkle at an attractive valuation of over 10x 2021 Adjusted EBITDA, delivering value to our stakeholders. We are committed to working with CRH Americas on a smooth transition for the Hinkle employees and customers.”

Summit Materials says that the divestiture supports the company’s Elevate Summit Strategy which includes a disciplined and ongoing portfolio optimization designed to drive Summit forward with its strategic priority of being a materials-led company with selective participation in high return downstream businesses.

Summit has reported a first quarter net loss of US$34.8 million on revenue of US$392.5 million compared with a net loss of US$23.2 million on revenue of US$398.5 million in the first quarter of 2021. The company sold 13.4 million tons of aggregates in the latest quarter, down from 13.5 million tons in last year’s first quarter. Unit prices for aggregates, however, increased from US$10.64/ton to US$11.15/ton.

Volume 36, Issue 10

Volume 35, Issue 10

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