Quikrete to acquire Summit Materials
Summit Materials, Inc., a Denver-based producer of aggregates and cement, has entered into a definitive agreement to be acquired by Quikrete Holdings, Inc. (Quikrete) for $52.50 per share in cash, for a total value of approximately $11.5 billion, including debt.
The deal has been unanimously approved by the Summit and Quikrete boards of directors, per a news release.
The transaction combines Summit's aggregates, cement and ready-mix concrete businesses with Quikrete's concrete and cement-based products business to create a construction materials powerhouse.
"We are pleased to have reached this agreement which will deliver 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 range of alternatives and determined that this transaction is the best way to maximize value for our shareholders."
"This combination, and the value it creates, is a testament to our stellar strategic and financial performance, agile operational and commercial execution, and to the strength and talent of our entire team," said Anne Noonan, Summit Materials president and CEO. "We believe this transaction will create new and exciting opportunities for our employees and customers. In Quikrete, we have found a strong partner that shares our commitment to safety and innovation, and we are excited to join forces with their team."
"We are thrilled to welcome Summit into 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. We look forward to working closely with the talented team at Summit to achieve our shared vision for the future."
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, Summit will become a privately held subsidiary of Quikrete and its common stock will no longer be traded on the NYSE.
Morgan Stanley & Co. LLC and Evercore are acting as financial advisors to Summit, and Davis Polk & Wardwell LLP is acting as legal advisor. Wells Fargo is acting as exclusive financial advisor to Quikrete, and Troutman Pepper Hamilton Sanders LLP and Covington & Burling LLP are acting as legal counsel. Wells Fargo has provided a debt financing commitment for the transaction.
