Summit Materials said in a statement Nov. 25 that rival Quikrete is buying the company in a deal valued at $11.5 billion, in a move to capitalize on high demand for construction materials.
The building materials sector has seen other such consolidations due to increased US government infrastructure spending and anticipation of growing demand for materials, making deals preferable for the shareholders. Quikrete agreed to pay $52.50 per share in cash for Summit, bringing the total sales price to $11.5 billion.
The transaction combines Summit’s aggregates, cement and ready-mixed concrete businesses with Quikrete’s concrete and cement-based products business to create a vertically integrated building materials supplier headquartered in North America, the company said.
“We are pleased to have reached this agreement that will provide significant, immediate and certain cash value to our shareholders,” said Howard Lance, Chairman of Summit’s Board of Directors. “In reaching this decision, our Board carefully considered a number of alternatives and determined that this transaction is the best way to maximize value for our stockholders.”
The transaction is expected to close in the first half of 2025, subject to Summit shareholder approval, regulatory approvals and other customary closing conditions. Upon completion of the transaction, publicly traded Summit will become a privately held subsidiary of Quikrete.
“We are delighted to welcome Summit to the Quikrete family,” said Will Magill, CEO of Quikrete. “This acquisition represents a significant milestone in our journey to expand our capabilities and geographic presence. Summit is a recognized leader with a highly complementary portfolio of trusted aggregate, cement and ready mix solutions.”
