Materials
Quikrete Purchases Concrete Rival Summit Materials for $11.5B
Consolidation creates one of the world's biggest concrete supply chains under one corporate parent.
If the transaction closes as planned, Summit Materials adding its business to Quikrete's will create a concrete production giant.
Photo by Jeff Yoders/ENR
Concrete supplier Quikrete is buying rival Summit Materials, in a deal valued at $11.5 billion that will capitalize on high demand for building materials, the company said in a statement Nov. 25.
The building materials sector has seen other such consolidations due to rising U.S. government infrastructure spending and anticipation of growing material demand, making dealmaking preferable for shareholders.
Quikrete agreed to pay $52.50 per share in cash for Summit.
The transaction combines Summit's cement, ready-mix concrete and aggregates businesses with Quikrete's concrete and cement-based product units to create a vertically integrated, North America-based construction materials provider, the company said.
"We are pleased to have reached this agreement which will deliver significant, immediate and certain cash value to our shareholders," said Summit Chairman Howard Lance. "In reaching this decision, our board carefully considered a range of alternatives and determined that this transaction is the best way to maximize value for our shareholders."
At closing of the transaction, expected in the first half of 2025 subject to Summit shareholder and other approvals. the publicly traded firm will become a privately held subsidiary of Quikrete.
"We are thrilled to welcome Summit into the Quikrete family. This acquisition represents a significant milestone in our journey to expand our capabilities and geographic presence, said Quikrete CEO Will Magill. "Summit is a recognized leader with a highly complementary portfolio of trusted aggregate, cement and ready-mix solutions."
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