The US’s largest construction aggregates producer, Vulcan Materials Company, completed six acquisitions during its third quarter. These comprise five aggregates facilities and related downstream assets in Phoenix (Arizona), Albuquerque and Santa Fe (New Mexico), and an aggregates operation in Delaware that serves the markets in Northern Virginia and Washington, DC.
The purchases follow the acquisition of four aggregates facilities in the San Francisco Bay area and of aggregates operations and distribution yards that serve the Greater Dallas/Fort Worth markets. Together, the transactions have increased Vulcan’s permitted aggregates reserves by over 450 million t. Investment in these acquisitions has formed part of the company’s ‘strategic redeployment’ of capital from the sale of its cement and ready-mix concrete operations in Florida earlier this year.
“Aggregates are an essential, long-term resource of limited availability and significant value, particularly in the markets we serve. Consistent with our aggregates-focused strategy and ongoing commitment to driving profitability as an industry leader in unit profit margins, these acquisitions further enhance our future earnings potential, especially given the positive momentum we see across our markets,” stated Tom Hill, President and Chief Executive Officer.
“We not only expect that these assets will generate attractive returns in their own right, but also that they will create significant synergies with our existing asset base. These acquisitions complement existing aggregates sources and distribution facilities in key growth markets in Arizona, California, Texas and Northern Virginia while also providing access to new markets in New Mexico,” he added.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/the-americas/01102014/vulcan-materials-company-announces-six-acquisitions-591/