U.S. Concrete wraps up acquisition in Canada

U.S. Concrete, a supplier of aggregate and ready-mixed concrete, completed the purchase of Orca Quarry on Vancouver Island, British Columbia, Canada.

According to U.S. Concrete, it purchased fee simple property and the underlying royalty agreement associated with the quarry. The acquisition includes about 1,551 acres in four parcels of previously leased land.

“Since the Polaris Materials acquisition in 2017, our strategic direction has been to grow our aggregates profitability,” says Ronnie Pruitt, U.S. Concrete president and CEO. “This acquisition eliminates the royalty agreement which immediately improves our aggregates margin and cash generation.

“We take pride in being a disciplined buyer, and this purchase provides an extremely attractive multiple. I am confident that Polaris, like all of our aggregates segment expansions, will continue to provide near- and long-term value to our shareholders. Since acquiring Polaris, our efforts in increasing the throughput at our Long Beach terminal, permitting of a new terminal in the Port of Oakland, and expanding through the Black Bear project will support the growth of our supply of high-quality, highly specified material to the aggregates constrained Southern and Northern California markets.”