U.S. Concrete Inc. has acquired an operational cementitious terminal, bulk storage facility, and approximately eight and a half acres of land with access to the Port of Stockton, Calif. The previous owner was George Weinberger Properties and Boral Limited is the current leasee of the facility, according to information provided by the Port of Stockton.
“I am pleased to announce this strategic acquisition which provides better control of our supply chain and cementitious supply in the Bay Area,” said Ronnie Pruitt, U.S. Concrete president and chief executive officer. “We expect that this acquisition will benefit our West Region in the short-term and provide long-term shareholder value. With the supply of our Orca aggregates through our existing Polaris terminal operations and now the addition of cementitious materials with this acquisition, we are building sourcing options into this market which will improve margins over the long-term while successfully fulfilling our strategic growth initiatives.”
The company previously announced it had purchased fee simple property and the underlying royalty agreement associated with the Orca Quarry on Vancouver Island, British Columbia, Canada. The acquisition includes approximately 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 and this acquisition eliminates the royalty agreement which immediately improves our aggregates margin and cash generation,” said Pruitt. “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.”