Summit Materials, Argos USA to combine

By |  September 7, 2023

Summit Materials and Argos logos

Summit Materials came to terms on a deal to purchase Cementos Argos’ operations in the U.S.

Through the agreement, Summit and Argos North America Corp. are combining in a cash and stock transaction valued at $3.2 billion.

Argos USA has cement operations in the Southeast, Mid-Atlantic and Texas. With a footprint comprising four integrated cement plants, about 140 ready-mixed concrete plants and eight ports, Summit says Argos USA’s portfolio is well positioned to capitalize on positive demand drivers across public infrastructure, residential and commercial end markets.

Argos USA has a total installed cement grinding capacity of 9.6 million tons per annum, Summit says, with additional import capacity providing incremental scale and operational flexibility. About 85 percent of Argos USA’s EBITDA is generated from its cement platform.

“Combining Argos USA with Summit is a significant milestone as we execute against and accelerate our materials-led portfolio strategy,” says Anne Noonan, president and CEO of Summit. “The transaction will extend our geographic reach into high-growth markets, creating a leading cement enterprise nationwide and [bringing] together two talent-rich organizations to innovate and deliver value-added solutions for our customers.

“Financially, we have clear line of sight to achieving targeted synergies of more than $100 million annually as we unlock the full potential of this powerful combination,” Noonan adds. “The Argos USA team has done an excellent job growing and operating its business, and we look forward to welcoming them, and their expertise, to the Summit family.”

According to Summit, the combination with Argos USA creates the fourth-largest cement platform in the U.S.

“This combination accelerates the strategic growth plans for both Argos North America and Summit,” says Simon Bates, CEO of Argos USA. “As a result of the combination, our ability to share best practices and the increased access to aggregate sources will enable us to better serve our customers.”

Summit expects the deal to close in the first half of 2024. The deal is subject to customary closing conditions, including regulatory approvals and approval by Summit shareholders.

Noonan will lead the combined company following the deal’s closing. The company will operate as Summit and continue to trade on the New York Stock Exchange.

Additionally, Summit says it expects its board of directors to be comprised of eight Summit-appointed representatives and three representatives appointed by Cementos Argos.

“We are committed to strengthen and help shape the future of the combined company,” says Jorge Mario Velasquez, chairman of the board at Cementos Argos. “We intend to be long-term shareholders. Our commitment to the success of this platform transcends the transaction itself. We believe in the growth potential and value generation that this transaction offers, and we want to actively participate jointly with the Summit family by contributing our knowledge and expertise to drive that growth.”

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

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