One of the key indicators of an expanding construction-materials market is merger and acquisition activity. We are starting to see a little bit of that right now.
Vulcan Materials Co. signed an asset purchase agreement to acquire Lebanon, Tenn.-based LoJac Holdings Corp.’s asphalt, construction, safety and Monterey operations. LoJac is a prominent asphalt producer in Middle Tennessee and contractor for site grading, asphalt and concrete paving known for highway construction and asphalt work
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.
Athabasca Minerals Inc. purchased two gravel operations located in the Wood Buffalo region of Alberta, Canada. The gravel pits include KM248 and Cowpar gravel properties and were acquired for a purchase price of CA$600,000.
In addition to the aggregates side, our sister publication Concrete Products is reporting:
Basalite acquired Colorado Springs, Colo., and Cheyenne, Wyo., concrete block production assets – plus a retail showroom adjacent to the latter site – from Tennessee-based General Shale, best known for leadership in clay masonry.
Oldcastle Precast extended its deep presence in specialty structures for telecommunications and utility customers by acquiring the assets of Cell Blocks Inc., whose proprietary, post-tensioned foundation systems support tower installations of key U.S. wireless companies.
Cemex S.A.B. de C.V. is on track to unload a major non-core U.S. asset: the Rinker Materials concrete pipe and precast business. Under a definitive, late-2016 agreement, the producer will sell the entity to Atlanta-based Quikrete Holdings Inc. for about $500 million, plus an additional $40 million depending on future performance.
It is no secret that there is high hopes for the construction-materials industry right now. With that in mind, don’t be surprised to see an escalation of mergers and acquisitions up the road. There are other deals brewing, according to my sources, and they are going to be interesting indeed.