Summit Materials Inc. announced the divestiture of Kentucky-based Hinkle Contracting Co. LLC to an affiliate of CRH Americas Materials Inc.
Hinkle Contracting owns and operates asphalt plants, rock quarries and paving operations. Hinkle also owns Kentucky Hauling Inc., Bourbon Limestone, and Ohio Valley Asphalt LLC. In addition, Hinkle is a joint venture partner in Nally & Gibson and Hamilton Hinkle.
“Hinkle was among Summit’s early acquisitions and an integral part of the Company’s foundational growth,” said Summit Materials CEO Anne Noonan. “Moving forward, we are pleased to have reached a mutually beneficial transaction with CRH Americas for Hinkle at an attractive valuation of over 10x 2021 Adjusted EBITDA, delivering value to our stakeholders. We are committed to working with CRH Americas on a smooth transition for the Hinkle employees and customers.”
The Hinkle divestiture supports the company’s Elevate Summit Strategy which includes a disciplined and ongoing portfolio optimization designed to drive Summit forward with its strategic priority of being a materials-led company with selective participation in high return downstream businesses. The Hinkle sale represents Summit’s tenth business divestiture since launching the Elevate Summit strategy in March of 2021.
“The implementation of our Elevate Summit long term strategy continues to drive improved execution and financial performance as evidenced by record reported 2021 net revenue, net income, adjusted cash gross profit, and adjusted EBITDA,” continued Noonan. “Our Market Leadership focus, which combines organic growth and portfolio optimization – together with a stronger balance sheet position will provide Summit with the financial flexibility to support future growth through continued greenfield investments and the pursuit of strategic acquisitions to further enhance shareholder value.”