U.S. Concrete Inc. closed its third and fourth deals of 2015, capping the first half by acquiring the assets of DuBrook Concrete Inc., Chantilly, Va., and Colonial Concrete Co., Newark, N.J. With three ready mixed plants and a 42-mixer fleet in northern Virginia, DuBrook is strategic to Superior Concrete Materials, U.S. Concrete’s long-held Washington, D.C. business. The Colonial transaction adds three sites and about 40 mixers to the New Jersey flagship, Eastern Concrete Materials.
“DuBrook is a great complement to our existing operations and further strengthens local customer relationships by providing a more robust service footprint,” says U.S. Concrete CEO William Sandbrook. “We expect this transaction to be immediately accretive to our business as we integrate DuBrook’s operations into our platform, and capitalize on commercial and residential project opportunities in the Washington, D.C. metropolitan area.”
In the northern New Jersey market, poised for strong growth driven by population expansion and economic development, Sandbrook adds, Colonial Concrete has a 35-year track record in commercial and residential work. Among marquee projects on its recent order log are the Red Bull Arena, Newark, and Meadowlands Sports Complex, East Rutherford.
The newly expanded Eastern Concrete and Superior Materials operate under USC Atlantic, one of four U.S. Concrete regions. Colonial and DuBrook follow a larger bolt-on deal, Flushing, N.Y.-based Ferrara Bros. Building Materials, which closed in April and solidified U.S. Concrete’s metro New York and New Jersey presence. The Ferrara Bros. brand covers nine plants east of the Hudson River, centered in three New York City boroughs, while the Eastern Concrete banner applies to one New York and 12 New Jersey plants, plus the Colonial properties. Beyond USC Atlantic, U.S. Concrete closed on a fourth transaction earlier this year, four-plant Right Away Redy Mix in Oakland, Calif.
PRECAST SUNSET
Concurrent with the USC Atlantic region developments, U.S. Concrete unloaded the remaining asset of its Precast Group—a Middleburg, Pa., architectural plant, buyer and sum undisclosed. The move consummates a strategy effected nearly three years ago with the sale of northern and southern California precast operations, followed by a Phoenix site—Oldcastle Precast and Jensen Precast, respectively, the suitors in transactions totaling $25 million.
The Pennsylvania plant deal, notes Sandbrook, “Marks the completion of our exit from the noncore precast concrete business. Since 2011, we have taken many successful steps to strategically position our business to capitalize on heavy construction material opportunities in our markets. This timely and accretive divestiture is another positive accomplishment and highly aligned with our strategic direction.”
LAFARGEHOLCIM SPURS RARE CRH C-SUITE ADDITION
CRH Plc Group Finance Director Maeve Carton will shift to a new assignment in January 2016: Identifying and implementing the optimum financial and business model for the future. Her appointment as group transformation director marks a rare increase in executive headcount for the Oldcastle Inc. parent, which through decades of global growth has confined its headquarters to the historic Belgard Castle near Dublin.
Carton will be responsible for improved shareholder returns by identifying further synergies, efficiencies and cash generation opportunities as the company acquires new businesses. Looming large will be assimilation of Lafarge Group and Holcim Ltd. assets in North America and Europe that CRH has agreed to acquire in a $7 billion-plus transaction, contingent on this month’s scheduled closing of the merger creating LafargeHolcim. The acquisition of Holcim (Canada) Inc. and overseas businesses will increase CRH by at least 25 percent, positioning it with $25 billion-plus in worldwide sales.
“This is a key role for the future of CRH. Maeve’s experience and insight into the structures and operations of CRH are invaluable at this time of transformation,” says Group Chief Executive Albert Manifold. A search for her successor will commence shortly, he adds, with an eye toward an appointment by late 2015.