Vulcan Materials Company is buying Aggregates USA , the aggregates business of SPO Partners, for $900 million in cash.
Aggregates USA operates 31 sites in Georgia, Florida, Tennessee, South Carolina and Virginia.
"We are pleased to have reached agreement with SPO Partners for these strategic assets, which enhance our ability to serve high growth markets throughout the southeastern US," said Tom Hill, chief executive, Vulcan.
"With the addition of these quarries and related assets, Vulcan will be able to capitalize on continuing increases in state highway funding programs in Georgia, Florida, South Carolina, Tennessee, and Virginia, and on the continued private sector growth across the region.
“This transaction will provide Vulcan with long-term high quality reserves across the entire portfolio. Aggregates USA operates efficient, high productivity facilities run by strong teams, and we welcome them to our Company."
The acquisition adds three granite quarries in Georgia – two of which have rail capabilities – with 16 rail distribution yards in Georgia, South Carolina and Florida.
In addition, the acquisition includes 12 limestone quarries in eastern Tennessee and southwest Virginia. Vulcan may sell several quarries in Tennessee to meet the regulatory approval process.
The transaction is subject to customary closing conditions and regulatory provisions.
