Dealmaking news is always a draw.
Whether Major League Baseball clubs are wooing Juan Soto or Vulcan Materials is coming to terms on its next acquisition, readers of all kinds can’t seem to get enough of the rumor mill.
Dealmaking talks are typically tightlipped in aggregates, but rumors began to swirl last fall when Bloomberg reported that Quikrete had approached Summit Materials about a potential takeover. Summit responded to the report that same day, acknowledging it had received an acquisition proposal while providing few specifics.
Of course, the response only got industry people wondering. A month later, Quikrete and Summit publicized their astounding $11.5 billion deal.
I bring up the lead-up to this industry-altering transaction because the Quikrete-Summit story was one of the most-read articles on Pit & Quarry’s website over the last 12 months. In fact, three of the eight most-read 2024 articles on pitandquarry.com were of the merger-and-acquisition variety. The three were:
1. Martin Marietta’s acquisition of Blue Water Industries. This deal went down early last year, with Martin Marietta adding 20 active aggregate operations in the Southeast from Blue Water for $2.05 billion.
2. Martin Marietta’s acquisition of Albert Frei & Sons. This sizable deal preceded Martin Marietta’s acquisition of Blue Water, giving the nation’s No. 2 producer 60 years’ worth of hard rock reserves in Colorado. The transaction price was not reported.
3. Arcosa’s acquisition of Stavola Holding Corp.’s construction materials business. Like the Martin Marietta-Blue Water and Quikrete-Summit deals, this 2024 transaction was in the billion-dollar range. The transaction price was $1.2 billion, giving Arcosa a platform in the New York-New Jersey metro statistical area. Arcosa acquired five hard rock quarries, 12 asphalt plants and three recycled aggregate sites in this deal that was completed in October.
Other notables and what’s ahead
Vulcan’s acquisition of Alabama-based Whitaker Contracting was also a top 25 story this year on pitandquarry.com. This deal netted Vulcan four quarries, three hot-mix asphalt plants, paving and contracting operations, and a pavement preservation division.
Vulcan’s 2024 acquisition of Wake Stone Corp. is worth noting, as well. That bolstered Vulcan in North Carolina and South Carolina with five locations.
The Vulcans and Martin Mariettas of the industry surely aren’t done making deals now that 2025 has arrived. The Federal Reserve, for instance, cut interest rates by another quarter of a point this week, with two additional rate cuts anticipated in 2025.
This should encourage dealmaking of all kinds in the new year – including bolt-ons, platforms and the mega transactions that happen every so often like the Quikrete-Summit blockbuster.
Featured photo: P&Q Staff
