The rumblings surrounding a Quikrete acquisition of Summit Materials came to an end Monday, when the companies announced they had come to terms on a monumental deal valued at $11.5 billion.
The transaction combines Summit’s aggregate, cement and ready-mixed concrete businesses with Quikrete’s concrete and cement-based products business. The boards of directors at Quikrete and Summit approved the deal unanimously.
“We are thrilled to welcome Summit into the Quikrete family,” says Will Magill, CEO of Quikrete. “This acquisition represents a significant milestone in our journey to expand our capabilities and geographic presence. Summit is a recognized leader with a highly complementary portfolio of trusted aggregate, cement and ready-mix solutions. We look forward to working closely with the talented team at Summit to achieve our shared vision for the future.”
According to Summit, the deal price represents an approximately 36 percent premium to its unaffected 90-day volume weighted average price and an approximately 29 percent premium to Summit’s unaffected share price.
“We are pleased to have reached this agreement, which will deliver significant, immediate and certain cash value to our shareholders,” says Howard Lance, chairman of Summit’s board. “In reaching this decision, our board carefully considered a range of alternatives and determined that this transaction is the best way to maximize value for our shareholders.”
Anne Noonan, president and CEO of Summit Materials, says Quikrete shares her company’s commitment to safety and innovation.
“This combination, and the value it creates, is a testament to our stellar strategic and financial performance, agile operational and commercial execution, and to the strength and talent of our entire team who have delivered a 34.6 percent annualized return since we began to develop our Elevate strategy on Sept. 1, 2020,” Noonan says. “We believe this transaction will create new and exciting opportunities for our employees and customers.”
Last month, Summit Materials first revealed that it received a non-binding acquisition proposal, with Bloomberg reporting that Quikrete was the organization that approached Summit.
Founded in 1940, Quikrete characterizes itself as the “largest manufacturer of pre-blended, packaged concrete and cementitious products in North America.”
