Polaris Materials has agreed to a takeover by US Concrete Inc., which outbid rival, Vulcan Materials Co., to secure that Canadian aggregates producer for CAN$3.4 per share. Vulcan has previously bit CAN$2.79 per share.
Polaris Materials has agreed to a takeover by US Concrete Inc., which outbid rival, Vulcan Materials Co., to secure that Canadian aggregates producer for CAN$3.4 per share. Vulcan has previously bit CAN$2.79 per share.
“The offer represents increased value for our shareholders,” said Ken Palko, President and CEO of Polaris. “US Concrete has used our products in a number of marquis projects in California and is committed to ensuring a smooth transition.”
The ability to vertically integrate Polaris into its operations in California was a key factor in US Concrete’s bid, said its President, CEO and Vice Chairman, William J. Sandbrook. US Concrete already operates a similar business model in New York.
“The acquisition of Polaris will provide meaningful synergies and strengthen the company’s strategic position in the highly-attractive, aggregate supply-constrained Californian markets,” continued Sandbrook.
The deal will enable US Concrete to self-supply a majority of its ready-mixed concrete operations with aggregates in northern California. It also offers the company an entrance into the southern Californian market via Polaris’ Long Beach Terminal.
Following the Polaris deal, US Concrete also announced the acquisition of two northern California ready-mixed concrete operations: Harbour Ready-Mix and A-1 Materials.
"Expanding our market presence and diversifying our customer base in this vibrant and growing market is very exciting,” continued Sandbrook. “Pent up demand from recent weather delays and a significantly undersupplied residential housing market will allow us to gain immediate traction for long-term success.”
Polaris will pay Vulcan a CAN$10 million to terminate its agreement.
“Vulcan is a disciplined buyer, and we believe our prior agreement to acquire Polaris represented full and fair value for the company,” said the company’s Chairman and CEO, Tom Hill.
The Alabama-based company would remain on the market for “opportunities to enhance shareholder value,” Hill concluded.
Read the article online at: https://www.worldcement.com/the-americas/02102017/us-concrete-outbids-vulcan-to-win-polaris/