Summit Materials Inc., Denver, has acquired Sierra Ready Mix, LLC, which serves the Las Vegas market from one sand & gravel pit and two concrete plants. The deal brings the suitor’s largest integrated materials and road-building business, Kilgore Companies, into a fourth state, Nevada, alongside Utah, Idaho and Wyoming.
“[The] vertically integrated operations are a good fit within our Utah-based Kilgore platform and a very sound entry into Las Vegas, the next large market south of the Wasatch Front,” says Summit Materials CEO Tom Hill. “Sierra has a solid position in a sizeable market at an attractive point in the recovery cycle.” The existing management team will remain in place to continue to grow and develop the business, he adds.
Cemex S.A.B. de C.V. has announced an agreement in principle to sell Grupo Cementos de Chihuahua, S.A.B. de C.V. its Odessa, Texas, and Lyons, Colo., cement plants, with 1 million metric tons’ combined annual capacity; one Colorado and two Texas cement terminals; plus, ready mixed, aggregate and building materials businesses in El Paso, Texas, and Las Cruces, N.M.
“These assets strengthen GCC’s footprint in key regional markets, enhance our ability to serve the construction industry efficiently, and support our long-term growth strategy in the United States with an additional 45 percent of cement production capacity, a more robust distribution network, and building materials capabilities,” affirms GCC CEO Enrique Escalante.
Subject to binding agreements and regulatory approvals, and scheduled for closing by year end, the $400 million transaction would be effected through Denver-based GCC America. The Cemex assets would join a portfolio of cement production and distribution sites in the Dakotas, Colorado, Wyoming and New Mexico, plus ready mixed concrete platforms in the Dakotas, Arkansas and Oklahoma.
A new Oldcastle Precast and Module X Solutions joint venture will manufacture protective modular buildings for the telecommunications, petrochemical, oil and gas, fiber regeneration, and solar industries. Module X Oldcastle LLC will be based at a 750,000-sq.-ft. operation in Shreveport, La.
“This joint venture will enable Module X and Oldcastle to more effectively target the growing market for protective modular buildings in the United States,” says Chairman Steven Schoonover. “Through Module X’s expertise as an industry leader in modular building systems and Oldcastle Precast’s significant geographic footprint, Module X Oldcastle is uniquely positioned to meet the needs of customers in the industrial, government, commercial and residential sectors.”
“Module X Solutions is known for its modular innovations, and combined with Oldcastle Precast’s long standing reputation in building products, creates a dynamic team that will allow us to reach new and existing customers in many industries, with product lines encompassing concrete and light and heavy gauge steel,” adds Module X Oldcastle President Dave Steevens.
The joint venture will offer diversified products and services to projected growth industries while leveraging joint processes and economies of scale to gain market share, he adds, while Module X Solutions will continue to produce protective building systems for domestic and international government projects.
South Dakota’s Gage Brothers Concrete, Inc. announced the retirement of Tom and Fred Gage from the company’s board of directors, marking the first time in the company’s 101-year history that no Gage family member will be directly involved in decision making for the concrete operations. Longtime Gage Bros. President Tom Kelley was named chairman. Immediate predecessors Fred Gage (2009-2016) and Tom Gage (2006-2009) are the grandsons of company founder William Gage.
“[Fred Gage’s] knowledge of the company, its culture and its unique role in the precast concrete marketplace has been invaluable to me and the executive team as we transformed this company,” says Kelley, who chaired the Precast/Prestressed Concrete Institutein 2013. “All of us will miss having him on the Board, but we know he remains a passionate and loyal supporter of the company. It was a great gift from the Gages to all of our employees to be given the company, as opposed to selling [it] on the open market. It enabled us to maintain both our brain trust and culture, which will be a valuable component to future success.”
Joining him on the Gage Brothers board are Secretary/Treasurer David Honner, Chuck Smith, Joe Bunkers and Loren Koepsell. They oversee a precast/prestressed operation with a payroll of 250 and annual sales exceeding $30 million.
Tindall Corp. has appointed Curtis Fields as Georgia Division Operations manager, overseeing all fabrication, project delivery and installation phases. He has nearly 20 years’ hands-on experience in plant and field operations in precast concrete; his previous positions with Tindall include managing quality assurance and production procedures as a plant supervisor and overseeing commercial and industrial projects as a field project manager. The Tindall Georgia team serves the Southern region with custom architectural or structural precast/prestressed systems for commercial, industrial, and power generation.
Former General Shale CEO Richard Green has been recognized with the Brick Industry Association 2016 Lifetime Achievement Award, recognizing individual contributions of excellence in leadership and dedication for a span of 25 years or more. The award was presented during the BIA spring meeting in Nashville.
Green joined Johnson City, Tenn.-based General Shale in 1973. Throughout his career he held a number of positions, including Knoxville plant manager; production manager for several regional manufacturing facilities; and, vice president of marketing. He was appointed to the top executive post in 1994, and served as CEO until his April 2014 retirement. He is credited with helping General Shale develop the most forward-looking and efficient plant network in the U.S. brick industry, and positioning it as one of North America’s largest brick, stone and concrete block producers.
John Ravelli has been promoted to vice president of Manufacturing for EP Henry in Woodbury, N.J. During 30-plus years of service, management notes, he has been a) an integral part of EP Henry’s transformation from a block producer to an established hardscaping industry leader; and, b) instrumental in product development and engineering while aligning manufacturing operations to support strategic growth and business goals.
MARTIN MARIETTA, VULCAN IMPRESS
Investor confidence in the top two U.S. publicly traded industry operators soared following strong starts to 2016. Comparing 2016 and 2015 first quarter numbers, Martin Marietta Materials reported these year-over-year shipment and pricing increases, by product: ready mixed concrete, 31 percent and 11.7 percent; cement, 13.8 percent and 3.6 percent; and aggregates, 13.3 percent and 8 percent. Among key pricing metrics noted in its 2016 Q1 earnings report are these average selling prices per ton, measured against prior year levels: aggregates, $13.04, up 8.1 percent; cement, $100.04, up 3.6 percent. Martin Marietta’s $734 million in sales and $145 million in gross profit for 2016 Q1 represent 16 percent and 95 percent gains over 2015 Q1 results.
“We are pleased to report a record first quarter even as we are only in the early-stage of recovery in broadly-based construction activity,” said Martin Marietta CEO Ward Nye. “Our results are indicative of strict adherence to maintaining a relentless strategic and tactical focus on our leading operating positions in economically-diverse, high-growth geographies, and improving market conditions throughout the vast majority of our business.”
Vulcan Materials, which derives considerably less revenue from integrated businesses than Martin Marietta, reports these year-over-year 2016 Q1 gains: aggregates shipments and (freight-adjusted pricing) up 17 percent and 9.5 percent; and, ready mixed concrete sales and pricing up 13 percent and 4 percent. Among key pricing metrics, the producer notes these 2016 and 2015 Q1 average selling prices: aggregates (freight-adjusted) $12.42/ton, up from $11.34/ton; and ready mixed concrete, $108.58/yd. up from $104.25/yd. Net sales and gross profit of $755 million and $165 million in 2016 Q1 represent 20 percent and 112 percent gains over 2015 Q1.
“The recovery in construction activity continues across most of our markets and strong first quarter volume growth—along with the growth we’ve seen over the past several quarters—reflects that sustained strengthening in demand,” noted Vulcan CEO Tom Hill. “Several factors contributed to the above-trend volume growth seen in the first quarter, including relatively favorable weather conditions in certain of our markets, customers’ success in winning and executing new project work, incremental improvements in public construction spending, and an additional shipping day in the quarter due to Leap Year.”