Nov. 25, 2024 – While it was previously announced that Summit Materials and Quikrete were in acquisition discussions, it is now a done deal, subject of course to Summit shareholder approval, regulatory approvals and other customary closing conditions. Summit will be acquired by Quikrete Holdings Inc. for $52.50 per share in cash, for a total enterprise value of approximately $11.5 billion, including debt.
“As I wrote when this potential transaction was first disclosed, this is yet another multi-billion dollar transaction in the construction materials space, and speaks to the continued trend of consolidation in our industry,” said Rock Products columnist Pierre Villere, president and senior managing partner of Allen-Villere Partners, an investment banking firm with a national practice in the construction materials industry that specializes in mergers & acquisitions. “This combination results in catapulting Quikrete into the ranks of the largest privately held enterprises in our industry, if not the largest. The senior management team at Quikrete continues to execute brilliantly on their growth strategy.”
Looking at the deal with concrete industry perspective, Don Marsh, editor of Rock Products’ sister publication Concrete Products, said, “The Summit deal follows the logic that guided major Quikrete investments in the Pavestone, Midwest Block, Rinker Materials and Forterra businesses. They positioned Quikrete with strong stakes in concrete masonry building and hardscape unit, concrete pipe and precast production, each segment complementing the packaged materials flagship.”
The Summit cement and aggregate production and distribution assets appear to significantly strengthen a supply chain for charter and newer profit centers.
“Quikrete Holdings’ ability to finance the Summit transaction speaks to the sound management of a company that built one of the most recognizable construction materials brands among tradespeople and consumers alike, then looked beyond its core business to excel in a model that Oldcastle APG and Oldcastle Infrastructure set in manufactured concrete with the Sakrete banner in tow. It will be of little surprise if Quikrete seizes synergies from the Summit assets in a manner mirroring CRH Americas’ positioning of the Ash Grove Cement operations alongside the Oldcastle businesses,” Marsh concluded.