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Birmingham-based Vulcan Materials Company has entered into a definitive merger agreement U.S. Concrete, Inc. a leading supplier of aggregates and ready-mixed concrete from Texas, according to a Vulcan Materials news release.
Under the terms of the agreement, Vulcan will acquire all of the issued and outstanding shares of U.S. Concrete common stock for a purchase price of $74.00 per share in cash, which represents a total equity value of $1.294 billion.
The transaction was unanimously approved by the boards of directors of both companies and is expected to close in the second half of 2021, subject to U.S. Concrete shareholder approval, regulatory clearance, and other customary closing conditions.
“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,”Tom Hill, Chairman and CEO of Vulcan Materials Company
U.S. Concrete operates in large, attractive metropolitan areas in California, Texas and the Northeast that complement Vulcan’s existing footprint.
Highlights from the merger include:
- Complements Vulcan’s existing aggregates business in California with access to blue-water source of high quality aggregates reserves;
- Enhances Vulcan’s position in key Texas growth areas;
- Expands Vulcan’s aggregates footprint, including in the attractive New York and New Jersey metropolitan areas
A Birmingham Original
An S&P 500 company and largest supplier of construction aggregate in the United States, the Birmingham-based Vulcan Materials was founded in 1909. The company’s original name was Birmingham Slag. In 1957, the private company went public, and was renamed Vulcan Materials.