Birmingham-based Vulcan Materials Co. is acquiring all issued and outstanding shares of U.S. Concrete, a Texas-based firm, in a deal valued at $1.29 billion.
Boards of both companies have approved the merger, which is expected to close in the second quarter of 2021, pending shareholder and regulatory approvals.
U.S. Concrete, based in Euless, Texas — part of the Dallas metroplex — has 27 aggregates operations in Texas, California and the Northeast and shipped 12.6 million tons in 2020.
In addition to providing a strong foothold in key areas such as Texas, New York and New Jersey, the acquisition is expected to increase Vulcan’s EBITDA by $190 million and to increase its earnings per share.
Tom Hill, chairman and CEO of Vulcan Materials Co., 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 CEO of U.S. Concrete, added, “Today’s 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.”
The Greystone Group is serving as financial advisor to Vulcan. Truist Securities Inc. is serving as sole lead arranger on committed financing to Vulcan. Wachtell, Lipton, Rosen & Katz and Bradley Arant Boult Cummings LLP are serving as legal counsel to Vulcan. Evercore and BNP Paribas Securities Corp. are serving as financial advisors to U.S. Concrete. Gibson, Dunn & Crutcher LLP and Akin Gump Strauss Hauer & Feld LLP are serving as legal counsel to U.S. Concrete.
Vulcan Materials, an S&P 500 company, supplies construction aggregates — primarily crushed stone, sand and gravel — plus asphalt and ready-mixed concrete.
