P&Q Editors Blog
Competitive fires
January 5, 2012
By: Pit & Quarry Staff
Martin Marietta Materials' takeover bid for Vulcan Materials has strengthened the competitive fire between the nation's two largest aggregate producers. And understandably so. The companies have been going at each other pretty good lately, since Martin Marietta announced its intentions on Dec. 12 to acquire Vulcan via an all-stock transaction valued at a reported $4.7 billion. Martin Marietta says a merger would work, creating a global leader in construction aggregates. Vulcan says it's a bad idea. To get a feel for where things stand between them, you only need to look at special web pages created by both companies that provide information on Martin Marietta's takeover attempt. Martin Marietta's information can be found at www.aggregatesleader.com. How about Vulcan's? www.realaggregatesleader.com. Say no more. – Brian Richesson
M&A and NIMBY
June 11, 2010
By: Pit & Quarry Staff
There has not been a lot of M&A activity of late in the aggregates industry, but reports out of California indicate that Teichert Materials, Sacramento, Calif., will buy Chevreaux Aggregates, Auburn, Calif., which has served the area for more than 60 years. The partnership deal also includes Rocklin’s Western Care Construction Co. Chevreaux Aggregates was founded by Joe Chevreaux, who died in 1999. The company has been involved in a NIMBY fight with a group called Meadow Vista Protection over the legality of an asphalt plant. One of its members said that area residents could likely accept continued use of the site in question as a gravel plant, but the potential new owners would find it more difficult to win acceptance of an asphalt plant. The fact that any NIMBY group for whatever reason has a comfort level with an aggregates operation is good to hear. Asphalt or concrete plants are often part of the business equation for an aggregates operation, but the question is worth asking: do they elevate community opposition if located on the same site? No question that having your best customer on-site has a lot of advantages, but there are obviously other considerations as well. – Mark S. Kuhar
