After Settlement With Justice Dept., Vulcan Buys Aggregates Company
Construction-materials giant Vulcan Materials Co. has completed the $900-million acquisition of Aggregates USA, after reaching an asset-sale agreement with the Dept. of Justice to federal antitrust objections.
Birmingham, Ala.-based Vulcan, which says it is the largest U.S. aggregates producer, said on Jan. 2 that it had closed the Aggregates USA purchase on Dec. 29, adding three granite quarries in Georgia and 16 rail yards in Georgia, South Carolina and Florida.
Under the settlement with the Justice Dept., announced on Dec. 22, Vulcan sold 17 Aggregates USA quarries and other facilities in Tennessee and Virginia to Blue Water Industries LLC for $290 million.
The divested facilities include 13 active quarries and yards and four inactive quarries in the Knoxville and Tri-Cities, Tenn., and Abingdon, Va., areas.
Tom Hill, Vulcan chairman and CEO, said in a statement that the addition of Aggregates USA "complements and expands our footprint in
Vulcan acquired Aggregates USA from SPO Partners, a Mill Valley, Calif.-based financial firm.
DOJ on Nov. 13 filed a lawsuit challenging Vulcan's deal, but it also filed a proposed settlement that would resolve the department's problems with the acquisition.
Justice had contended that Vulcan and Aggregates USA were the only two coarse-aggregate producers in Knoxville, Tri-Cities and Abingdon. It also said in a statement that the original acquisition plan "would likely result in higher prices and poorer customer service for aggregate customers in these local markets."
Makan Delrahim, assistant attorney general in charge of the antitrust division, said in a statement, "Without relying on a regulatory behavioral decree, these divestitures will ensure that customers, and ultimately taxpayers, in Tennessee and Virginia continue to benefit from robust competition and competitive prices."
Story updated on Jan. 2 with Vulcan announcement that it completed the acquisition.