Vulcan to Acquire U.S. Concrete for US$1.3 Billion

Vulcan Materials Co of Birmingham, AL and U.S. Concrete Inc of Euless, TX have entered into a definitive merger agreement. Under the terms of the agreement, Vulcan will acquire all of the issued and outstanding shares of U.S. Concrete for a purchase price of US$74.00/share in cash for a total of US$1.294 billion. The transaction has been unanimously approved by the boards of both companies and is expected to close in the second half of 2021.

Ronnie Pruitt, U.S. Concrete’s CEO, said, “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.”

Tom Hill, Vulcan’s CEO, said, “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. 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.”

For 2020, Vulcan reported total revenue of US$4.86 billion and its aggregates sales were essentially flat at US$3.94 billion. Aggregate shipments decreased from 215.5 million tons to 208.3 million tons. U.S. Concrete generated 2020 revenue of US$1.4 billion including aggregates revenue of US$216.4 million and shipped 12.6 million tons of aggregates in the year.

In 2017, Vulcan lost out to U.S. Concrete in the takeover of Polaris Materials Corp of Vancouver for US$309 million.

Volume 35, Issue 11

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