Quikrete, the privately held Sandy Springs concrete and cement company, will buy Denver-based Summit Materials in a deal worth more than $11 billion, including assumed debt.
Quikrete is the top producer of packaged concrete and cement mixes in North America, and the combination will create an even bigger construction materials giant.
Quikrete will pay $52.50 a share in cash for Summit in an agreement the companies said would likely close in the first half of next year after approval comes from Summit shareholders and regulators.
Summit makes ready-mix concrete products and is a supplier of asphalt surfacing in the U.S. and Canada. The deal was first reported by the Wall Street Journal.
Quikrete has a generally low profile in the metro Atlanta business community. One exception is the company’s sponsorship of the Atlanta Braves, paying for the Quikrete logo to appear on a patch on uniforms.
The company, founded in 1940, owns a portfolio of brands that include Quikrete, Spec Mix, Rinker Materials, U.S. Pipe, Contech Engineered Solutions, Keystone Hardscapes, Pavestone, Custom Building Products and QPR.
In a statement released by Summit, Quikrete Chief Executive Officer Will Magill said the deal is part of the company’s long-term strategic plan for growth.
“This acquisition represents a significant milestone in our journey to expand our capabilities and geographic presence,” he said. “Summit is a recognized leader with a highly complementary portfolio.”
Quikrete officials declined further comment. The company declined to provide further information about its size and employment levels.
Summit, a publicly traded company, saw its stock rise after confirming in October that a corporate suitor had made an offer to buy the company.
Summit stock was trading as low as $36.83 a share in early October. The acquisition price of $52.50 per share represents a boost of more than 42.5% from that price.
On Monday, Summit stock was essentially flat, trading at $50.75 a share in early afternoon, within $2 a share of its all-time high.
Since becoming Summit CEO four years ago, Anne Noonan has been divesting “noncore assets” to drive up earnings. That strategy has fueled annual growth, with the company’s stock price averaging 35% a year, according to the Journal.
Last year, Summit combined with a Colombian concrete maker’s American subsidiary in a deal valued at $3.2 billion, the paper reported.
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