Quikrete acquiring Texas pipe giant Forterra
Quikrete Holdings has entered into an agreement to acquire Forterra, Inc.
Based in Irving, Texas, Forterra manufactures water and drainage infrastructure pipes and related products in the United States and Eastern Canada.
Terms of the agreement call for Atlanta-based Quikrete to acquire all outstanding shares of Forterra at a price of $24 per share in an all-cash transaction. The deal also includes outstanding debt and is valued at approximately $2.74 billion.
Following the completion of the transaction, Forterra will become a privately held company.
“Forterra and Quikrete are an ideal strategic fit, and this combination is a natural next step for our company, enabling us to better serve our customers across the company on their concrete projects from start to finish,” said Will Magill, CEO of Quikrete Holdings. “We are excited to grow our capabilities in the potable water distribution market through Forterra’s well-respected U.S. Pipe business.”
Last month, Forterra reported net sales for 2020 increased 4.2% to $1.594 billion from 2019 sales of $1.529 billion. The company also posted a net income of $64.5 million in 2020 compared to a net loss of $7.3 million in 2019.
An affiliate of Lone Star Funds, a global private equity firm, acquired Forterra in 2015 and has maintained majority ownership since the company’s initial public offering in 2016.
Quikrete’s product portfolio ranges from its iconic Quikrete branded concrete and mortar mixes to precast and steel pedestrian and vehicular bridges.