Summit reveals details on four recent acquisitions

Summit Materials completed six acquisitions this year, including four that have closed since February.

According to Summit, the four latest acquisitions give the company about 90 million tons of permitted aggregate reserves, four quarries, three ready-mix concrete plants, one asphalt plant and related paving operations.

The four acquisitions represent bolt-on opportunities to existing platform businesses in Texas, South Carolina, Missouri and British Columbia, the company says. The total combined spend on the four acquisitions was about $70 million.

Together with the acquisitions of Everist Materials and Razorback Concrete, Summit’s combined year-to-date acquisition spend is at about $180 million.

Here’s a breakdown of Summit’s most recent acquisitions:

Carolina Sand (South Carolina). Carolina Sand is a construction and specialty sand supplier that enhances Summit’s existing exposure to the coastal South Carolina market. Summit estimates that Carolina Sand’s end-market exposure is entirely weighted toward private markets, with an emphasis on nonresidential construction.

Hanna’s Bend Aggregate (Texas). Hanna’s Bend is a sand-and-gravel supplier with significant permitted reserves in northeast Houston. Hanna’s Bend is an ideal fit with Summit’s existing aggregate operations in the Houston market, the company says. Summit estimates that Hanna’s Bend’s end-market exposure is largely weighted toward the nonresidential and residential construction markets.

Sandidge Concrete (Missouri). Sandidge is a ready-mix concrete business in southern Missouri that represents a bolt-on acquisition to Summit’s existing Con-Agg platform. Summit estimates that Sandidge’s end-market exposure is weighted mainly toward private markets, with some public market exposure.

Winvan Paving (British Columbia, Canada). Vancouver-based Winvan is an asphalt and paving company that represents a bolt-on acquisition to Summit’s aggregate business in British Columbia. The acquisition is consistent with Summit’s vertically integrated materials growth strategy, the company says. Summit estimates that Winvan’s end-market exposure is weighted equally between private and public markets.

“Our acquisition pipeline remains very active, with more than 20 transactions currently under review, including four potential acquisitions that are in late-stage diligence,” says Tom Hill, CEO of Summit Materials.