Under the agreement, Vulcan is to acquire all of the issued and outstanding shares of US Concrete common stock for a purchase price of $74.00 per share in cash, which represents a total equity value of $1.294 billion.
Vulcan says the acquisition represents a “natural addition” to its business with 27 aggregates operations serving California, Texas and the Northeast, that shipped 12.6 million tonnes in 2020.
The transaction also provides ready-mixed concrete operations that will expand Vulcan's service capabilities, the company adds.
The deal is also expected to complement Vulcan's existing aggregates business in California with access to blue-water source of high quality aggregates reserves while also enhancing its position in Texas.
Vulcan CEO Tom Hill says: "US 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 US Concrete employees to the Vulcan family."
US Concrete CEO Ronnie Pruitt says: “Our combined organisation 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 transaction is expected to close in the second half of 2021.
