Sources: Summit Materials Inc., Denver; CP staff
Summit Materials will broaden its Rocky Mountain and South Central region ready mixed concrete, aggregate and asphalt market footprint with the acquisition of Everist Materials LLC in Silverthorne, Colo., and Razorback Concrete Co. in West Memphis, Ark. Scheduled for closing before the end of February, the transactions enable Summit to expand its integrated, materials-based model in growing markets, notes CEO Tom Hill.
“Both companies bring proven operations, high-caliber assets and long-established customer relationships that provide an ideal entry point into early-cycle markets where we see long-term potential for profitable growth,” he says. “As one of the largest suppliers of aggregates, ready mixed concrete and asphalt in west-central Colorado, Everist will significantly expand our existing [Kilgore] operations in the region to include markets bordering Denver … where a combination of transportation infrastructure projects along the I-70 corridor and robust private construction spending activity stand to benefit our business in the years ahead.”
“Razorback is an aggregates-based business with the largest ready mixed concrete operations in central and northeastern Arkansas, representing a new regional market for Summit,” Hill observes. Given the proximity of Razorback ready mixed plants to the Memphis terminal of Summit’s Continental Cement business, he adds, “The acquisition is consistent with our long-term strategy to develop materials-based positions in select markets along the Mississippi River. We believe the Arkansas market is poised for higher construction activity levels over the longer term, driven by positive employment and population trends and increased public infrastructure spending.”
Everist Materials has seven sites, four with ready mixed concrete. Razorback Concrete has 18 ready mixed plants and five Razorrock operations. The producers net Summit Materials more than 100 million tons of aggregate reserves, along with their extensive network of vertically integrated concrete and asphalt plants serving public and private end-markets.