TOP NEWS
Summit-Quikcrete Merger
Summit Materials Inc. has entered into a definitive agreement to 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. The transaction combines Summit’s leading aggregates, cement and ready-mix concrete businesses with Quikrete’s leading concrete and cement-based products business to create a vertically integrated, North American, construction materials solutions provider with strong customer relationships and iconic products.
CRH Acquisition
CRH announced the acquisition of Dutra Materials in San Rafael, Calif. This acquisition expands CRH’s Americas Materials Solutions business and enhances its ability to provide integrated solutions to customers in northern California.
Vulcan Materials Acquisition
Vulcan Materials Co. has entered into a definitive agreement to acquire Superior Ready Mix Concrete, L.P. This value-enhancing acquisition will add six aggregates operations with more than 50 years of quality aggregates reserves to Vulcan’s California franchise.
USGS STATS
The U.S. Geological Survey (USGS) reported that an estimated 671 million metric tons (Mt) of total construction aggregates was sold or used in the United States in the third quarter of 2024, a decrease of 7% compared with that in the third quarter of 2023. The estimated production for consumption in the first nine months of 2024 was 1.79 billion Gt, a decrease of 6%, according to USGS Commodity Specialist Jason Christopher Willett.
ECONOMIC INDICATORS
The AVP Pulse Index this month rose 1.0% month-over-month, while increasing 7.9% year-over-year; and 11.2% over the past 36 months. The proprietary AVP Pulse Index – a joint effort between mergers and acquisition advisors Allen-Villere Partners and Rock Products – illustrates the health of the industry in one single trend line, using relevant data that is updated monthly or quarterly.
According to the U.S. Census Bureau, Construction spending during October 2024 was estimated at a seasonally adjusted annual rate of $2,174.0 billion, 0.4% (±1.2%) above the revised September estimate of $2,164.7 billion.
Total construction starts increased 4% in October to a seasonally adjusted annual rate of $1.2 trillion, according to Dodge Construction Network. Nonresidential building starts grew 14%, nonbuilding starts moved 2% higher, while residential building starts fell 3%.
MSHA WATCH
The Mine Safety and Health Administration (MSHA) completed impact inspections in October 2024 at 15 mines in Alabama, Arkansas, Colorado, Illinois, Kentucky, Louisiana, Michigan, Missouri, Nevada, New York, Pennsylvania, West Virginia and Wyoming and issued 286 violations. Inspections occurred at plants owned by Arcosa, Holcim and Mid-Michigan Materials, among others.
ENERGY
Brent Spot Prices
12/6/2024: $73.78/barrel, down $0.38/barrel from week earlier; down $2.16/barrel from year earlier.
Natural Gas Spot Prices
12/9/2024: $3.05/million Btu, up 0.004/million Btu from week earlier; up 0.664/million Btu from year earlier.
Retail Diesel
12/16/2024: $3.494/gal.; up $0.036 from week earlier; down $0.400/gal. from year earlier.
Electricity
9/20/2024: Average price to industrial customers 8.51 cents/kilowatt hour; up from 8.43 cents/kilowatt hour from year earlier.
Source: U.S. Energy Information Administration
WOMEN IN AGGREGATES
Women in Aggregates is a new group dedicated to supporting women working in the aggregates industry. The Mission Statement of the group is: “To create a supportive space for women that fosters leadership growth, networking opportunities and advocacy of the aggregate industry.” Membership in Women in Aggregates is open to any woman working in, or working in support of, the aggregates industry, including producers, manufacturers and distributors; and marketing, advertising or public relations professionals. Interested parties can go to www.womeninaggregates.com to join the mailing list and to stay apprised of future developments, meetings, events and other communications from the group. There is also a LinkedIn discussion page, at www.linkedin.com/groups/12717856/.