Houston-based U.S. Concrete Inc. is on track to become a top-five player in ready mixed production following last month’s announcement of closed and prospective
Houston-based U.S. Concrete Inc. is on track to become a top-five player in ready mixed production following last month’s announcement of closed and prospective deals that would bring its annual volume to 9 million yd. and fleet past the 1,500-mixer mark. The company reported a letter of intent to acquire Alberta Investments Inc., whose holdings include Texas-based Redi-Mix L.P., Carrollton, and Ingram Enterprises L.P., Brownwood.
Subject to a definitive purchase agreement anticipated by this month, the transaction stands to be U.S. Concrete’s largest to date and would close by mid-summer. The purchase would be covered by capital-raising efforts and cash on hand, which has recently exceeded $100 million, thanks especially to an 8 million-share stock offering in February that netted $85 million after expenses. U.S. Concrete’s shares have continued climbing from the $11.25 price of that offering, closing as high as $15.50 during May.
The Alberta businesses reported 2005 sales of $171 million, generated from Redi-Mix, with 13 plants in the Dallas/Fort Worth Metroplex; Ingram, with 17 ready mixed and three sand & gravel plants in west Texas; and, Alliance Haulers, which delivers cement and aggregate across the state with a fleet of 260-plus Redi-Mix or third party-owned trucks. The Redi-Mix plants would afford U.S. Concrete a commanding position in Dallas/Ft. Worth, home to the company’s second-largest franchise, 15-plant Beall Concrete Enterprises. U.S. Concrete bolstered Beall in late 2005 by acquiring another key market player, Go-Crete.
Redi-Mix and Ingram have a combined fleet of 310 mixers and production of 2.4 million yd. If those shipments are added to the approximately 6.6 million yd. (2005 shipments) from 106 existing plants, U.S. Concrete figures to rank among the top ready mixed producers by annual domestic volume Û behind Cemex and Rinker Materials and along side Florida Rock Industries, Lafarge North America, Lehigh Cement and Oldcastle Materials, each with an estimated 7 million-plus yd. output.
The week prior to announcing the Alberta development, U.S. Concrete closed on Flint, Mich.-based Kurtz Gravel Co., with annual ready mixed shipments of nearly 400,000 yd. The $13 million cash deal includes one quarry and six ready mixed plants in proximity to U.S. Concrete’s Detroit-metro franchise, Superior Materials (Farmington), and more than 100 trucks. Concurrent with the Kurtz transaction, U.S. Concrete completed a $5 million deal for the assets of Pre-Cast Mfg. Inc. in Phoenix. The business provides additional utility precast and vault production for U.S. Concrete’s Smith Pre-Cast unit. The bolt-on property is located about two miles from Smith, which is undergoing a seven-figure upgrade for improved manhole and vault capacity.