Summit Materials Inc. entered into definitive agreements to acquire Colorado-based Everist Materials, LLC and Arkansas-based Razorback Concrete Co., subject to customary closing conditions. Both transactions are expected to close on or before Feb. 28, 2017.
The materials-based acquisitions of Everist and Razorback collectively bring aggregates operations with more than 100 million tons of permitted reserves in Colorado and Arkansas, in addition to an extensive network of vertically integrated ready-mixed concrete and asphalt plants in growing public and private end-markets in proximity to Summit’s existing portfolio of materials-based assets.
“The pending acquisitions of Everist and Razorback enable Summit to expand its integrated, materials-based model in growing markets throughout west-central Colorado and Arkansas,” said Tom Hill, CEO of Summit. “We are pleased to welcome the Everist team, along with accomplished leaders Kent and Keith Ingram and their team at Razorback, to the Summit family of companies. Both companies bring proven operations, high-caliber assets and long-established customer relationships that provide an ideal entry point into early-cycle markets where we see long-term potential for profitable growth.
“As one of the largest suppliers of aggregates, ready-mixed concrete and asphalt in west-central Colorado, Everist will significantly expand our existing operations in the region to include markets bordering Denver,” continued Hill. “We view this region as an exciting opportunity for Summit, where a combination of transportation infrastructure projects along the I-70 corridor and robust private construction spending activity stand to benefit our business in the years ahead.
“Founded in 1965, Razorback is an aggregates-based business with the largest ready-mixed concrete operations in central and northeastern Arkansas, representing a new regional market for Summit,” added Hill. “Importantly, given Razorback’s proximity to Summit’s existing cement distribution terminal in Memphis, Tenn., the acquisition is consistent with our long-term strategy to develop materials-based positions in select markets along the Mississippi River served by our cement business. We believe the Arkansas market is poised for higher construction activity levels over the longer term, driven by positive employment and population trends and increased public infrastructure spending.”