An Operator Befitting Texas

Following up on letter of intent announced in May, Houston-based U.S. Concrete, Inc. reported early last month acquisition of Alberta Investments, Inc.

CP STAFF

Following up on letter of intent announced in May, Houston-based U.S. Concrete, Inc. reported early last month acquisition of Alberta Investments, Inc. and Alliance Haulers, Inc. for $165 million, subject to specified post-closing adjustments. The deal includes the assets of two main Texas subsidiaries, Carollton-based Redi-Mix L.P., which operates 13 ready-mixed concrete plants in the Dallas/Fort Worth Metroplex market and in areas north of the Metroplex; and, Brownwood-based Ingram Enterprises L.P., with 17 ready-mixed concrete plants and three sand and gravel plants in west Texas.

Redi-Mix and Ingram operate a combined fleet of approximately 310 mixer trucks and in 2005 produced approximately 2.4 million yd. of ready-mixed concrete and 1.2 million tons. Alliance Haulers provides cement and aggregate hauling services with a fleet of approximately 260 trucks owned by Redi-Mix and third-party haulers. For the twelve months ended March 31, 2006, Alberta Investments and Alliance Haulers generated revenues of approximately $181 million. The Redi-Mix and Ingram ready mixed volumes boost U.S. Concrete’s annual output to about 9 million yd. At that level, the company figures to be a top five U.S. producer, behind Cemex and Rinker Materials, but above or in a range comparable to Aggregate Industries, Lafarge North America, Lehigh Cement and Oldcastle Materials.

Alberta Investments is the fifth deal U.S. Concrete has completed since November 2005, when it effected bolt-on transactions for City Concrete in Memphis and Go-Crete/South Loop in Dallas/Ft. Worth. The latter properties have been integrated with Beall Concrete Enterprises, which is based in Euless, Texas, and anchors U.S. Concrete’s South Central region. Following the Go-Crete and City transactions were bolt-on deals for precast plants in Phoenix and northern California, plus the acquisition of Kurtz Gravel, whose Detroit area ready mixed and materials properties complement Superior Materials, U.S. Concrete’s primary business in Michigan.

The five deals total about $225 million and were funded with cash on hand; an $85 million stock offering in February; borrowing under a senior secured credit facility; and, placement of $85 million in senior subordinated notes that coincided with the Alberta closing.