Houston-based U.S. Concrete Inc. wrapped up 2005 by acquiring the operating assets of Go-Crete and South Loop Development Co., which produce and deliver
Houston-based U.S. Concrete Inc. wrapped up 2005 by acquiring the operating assets of Go-Crete and South Loop Development Co., which produce and deliver ready-mixed concrete from six plants and mine sand and gravel from a quarry in the greater Dallas/Ft. Worth market. During the 12 months ending Sept. 30, 2005, the companies logged about 800,000 yd. and 700,000 tons of ready mixed and aggregate production, with nearly $50 million in revenue. The aggregate quarry, which is situated on 2,100 acres, is estimated to have 10 million tons of reserves. U.S. Concrete purchased the assets for $27.3 million in cash and assumed certain capital lease liabilities with a net present value of about $2.0 million.
The assets are an excellent fit with existing plants and expand our presence in the greater Dallas/Ft. Worth, Texas market, says U.S. Concrete CEO Eugene Martineau. This increased market density will allow us to service our growing customer base more efficiently. In addition, the aggregate quarry represents our entry into the aggregate industry in north Texas, and we believe it provides an excellent complement to our existing ready-mixed concrete operations in that market. We will continue to explore additional opportunities to integrate aggregate businesses into our concrete operations. Prior to the South Loop transaction, he adds, New Jersey was the only market where U.S. Concrete operates integrated aggregate and ready mixed businesses.
The Go-Crete and South Loop properties will be assimilated into nine-plant Dallas/Ft. Worth flagship, Beall Concrete Enterprises Ltd., based north of Dallas in Euless. U.S. Concrete built the platform from the acquisition of Beall Industries in 2000 and L.H. Lacy Co. the following year. The expanded Beall franchise, with 14 concrete plants plus quarry, positions U.S. Concrete just behind market leaders Lattimore Materials, Southern Star Concrete and TXI. The Go-Crete/South Loop transaction follows U.S. Concrete’s recent purchase of the City Concrete businesses in Memphis.