Polaris gets another offer following Vulcan agreement

By |  September 24, 2017

Polaris Materials Corp. recently received an unsolicited offer from a major U.S. construction materials company listed on the U.S. stock exchange, the company announced.

Last month, however, the company entered into an agreement with Vulcan Materials, which agreed to acquire the aggregate and logistics company that serves California markets from operations in British Columbia, Canada.

According to Polaris, its board of directors has considered the new offer. Following consultation with its financial advisors and outside legal counsel, Polaris has determined that the new offer is or could reasonably be expected to result in a superior proposal than the Vulcan agreement.

In accordance with its agreement with Vulcan, Polaris has notified Vulcan that it considers the new offer to be a superior proposal. Vulcan has five business days to match the new proposal, according to Polaris. Vulcan’s matching period expires Sept. 28.

The Polaris business includes a high-capacity aggregate processing plant and deepwater port on Vancouver Island, along with associated long-term aggregate reserves and five distribution outlets in the San Francisco Bay area and in Long Beach, California.

Tom Hill, chairman and CEO of Vulcan, offered sentiments last month upon reaching an agreement with Polaris.

“We are very pleased to have reached agreement to acquire Polaris Materials, which is expected to further enhance our ability to serve major California markets,” Hill says. ”Polaris has assembled high-quality aggregate reserves that will further expand our product offerings, particularly for certain concrete applications, as well as our geographic coverage in markets in the San Francisco and Los Angeles metro areas.

“This acquisition will enhance our logistics capabilities with the ship delivery of aggregate products and provide Vulcan with a platform for future distribution outlet opportunities along the Pacific Coast,” Hill adds. “The acquisition is especially timely given California’s recent passage of SB1, which will provide $52 billion for key transportation infrastructure projects over the next 10 years, in addition to passage of local ballot measures that add more than $1 billion annually for infrastructure projects in key growth markets that we serve.”

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About the Author:

Kevin Yanik is editor-in-chief of Pit & Quarry. He can be reached at 216-706-3724 or kyanik@northcoastmedia.net.

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