Concrete supplier Quikrete is buying rival Summit Materials, in a deal valued at $11.5 billion that will capitalize on strong demand for construction materials, the company said in a statement Nov. 25.
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 to to the shareholders Quikrete agreed to pay $52.50 per share in cash for Summit.
The transaction combines Summit’s cement, ready-mixed concrete and aggregates businesses with Quikrete’s concrete and cement products units 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 Summit President Howard Lance. “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 shareholders.”
Upon closing of the transaction, expected to be in the first half of 2025 subject to Summit shareholder approvals and others. the listed company will become a private subsidiary of Quikrete.
“We are delighted to welcome Summit to the Quikrete family. This acquisition represents an important 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 aggregates, cement and ready solutions.”
