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2020 / 2021 Edition

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Vulcan to acquire U.S. Concrete

U.S. Concrete

Deal set to enhance and expand Vulcan’s aggregates-led business in attractive growing metropolitan areas

VULCAN Materials Company, one of the leading US producers of construction aggregates, and U.S. Concrete Inc., one of the leading suppliers of aggregates and ready-mixed concrete, have entered into a definitive merger agreement under which Vulcan will acquire all of the issued and outstanding shares of U.S. Concrete common stock for US$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 U.S. Concrete shareholders’ approval, regulatory clearance and other customary closing conditions.

Headquartered in Euless, Texas, U.S. Concrete have 27 aggregates operations serving California, Texas and the Northeast; operate in large, attractive metropolitan areas that complement Vulcan’s existing footprint; and shipped 12.6 million tons in 2020.

The transaction, which also provides strategically located ready-mixed concrete operations that will expand Vulcan’s service capabilities, is expected to increase Vulcan’s EBITDA by approximately US$190 million before synergies, and be accretive to their earnings per share in the first full year following closing.

Tom Hill, chairman and chief executive officer of Vulcan Materials Company, 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.

‘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 chief executive officer of U.S. Concrete, added: ‘The 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.’

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