Vulcan purchasing Aggregates USA in mega deal

By |  May 25, 2017

Vulcan Materials Co. reached an agreement with SPO Partners to acquire its aggregate business, Aggregates USA LLC, for $900 million in cash.

Aggregates USA operates 31 facilities in Georgia, Florida, South Carolina, Tennessee and Virginia, according to Vulcan.

“We are pleased to have reached agreement with SPO Partners for these strategic assets, which enhance our ability to serve high-growth markets throughout the southeastern U.S.,” says Tom Hill, Vulcan’s chairman and CEO. “With the addition of these quarries and related assets, Vulcan will be able to capitalize on continuing increases in state highway funding programs in Georgia, Florida, South Carolina, Tennessee and Virginia, and on the continued private-sector growth across the region.

“This transaction will provide Vulcan with long-term high-quality reserves across the entire portfolio,” Hill adds. “Aggregates USA operates efficient, high-productivity facilities run by strong teams, and we welcome them to our company.”

The acquisition complements and expands Vulcan’s service offerings in Georgia with three granite quarries – two of which have rail capabilities extending the company’s reach into important markets – along with 16 rail distribution yards in Georgia, South Carolina and Florida.

In addition, the acquisition includes 12 limestone quarries in eastern Tennessee and southwest Virginia.
Vulcan may divest several quarries in Tennessee to a third party in order to expedite the regulatory approval process, the company says.

The transaction is subject to closing conditions and regulatory provisions under the Hart-Scott-Rodino Act. Vulcan expects the transaction to be accretive to its earnings per share in the first year following the close.

Also, the North Bay Business Journal reports that Vulcan acquired California’s Shamrock Materials as one of its early 2017 acquisitions. According to the publication, Shamrock gives Vulcan concrete, rock, and sand and gravel facilities in Sonoma, Napa and Martin counties within California.

The Shamrock acquisition includes construction materials sites in Cotati and San Rafael; a sand and gravel outlet in Cloverdale; a materials depot; and ready-mix plants in San Rafael, Petaluma, Santa Rosa, Cloverdale and Napa, the North Bay Business Journal reports.

Kevin Yanik

About the Author:

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

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