Steeped in the transitioning Virginia and volatile Florida markets, Norfolk-based Titan America LLC is on pace to increase its annual concrete production
Steeped in the transitioning Virginia and volatile Florida markets, Norfolk-based Titan America LLC is on pace to increase its annual concrete production by more than one third Û to an estimated 5.5 million yd. Û following this spring’s closing on S&W Ready Mix Co. in Wilmington, N.C., and agreement to acquire Mechanicsville Concrete Inc. in Midlothian, Va. The latter company has five plants, operating as Powhatan Ready Mix in the counties around Richmond.
Those properties complement the Titan Virginia Ready-Mix LLC division, which has 15 plants concentrated in the Virginia Beach-Hampton market and along the Richmond-to-District of Columbia Interstate 95 corridor. Titan America anticipates a closing on Mechanicsville Concrete in May, and notes that Powhatan President and General Manager Ted Hinson and Vice President of Sales Ed Seay will continue in their respective capacities.
The S&W transaction, which closed in late March, includes 26 ready mixed plants and instantly positions the suitor in coastal North Carolina and South Carolina. S&W cofounder and CEO Harry Shaw remains at the helm with the title of president. Titan America announced late last year a plan to build or acquire a coastal Carolinas platform of up to 20 ready mixed sites by 2009. The S&W, Titan Virginia, and Mechanicsville/Powhatan ready mixed properties are strategic to Titan America’s cement and fly ash processing and marketing businesses.
Leading up to S&W, Titan America had primarily operated in Virginia and Florida, both markets where medium-sized ready mixed producers have become prime acquisition targets. Titan Virginia’s neighbor, Florida Rock, consolidated its leading Virginia position in 2006 by acquiring Springfield-based Newington Concrete/NewRock Materials. Its four properties and sister Florida Rock concrete and aggregate operations, from Norfolk to Baltimore, are earmarked for the Vulcan Mideast Division. That transition is pending Florida Rock Industries’ takeover by Vulcan Materials Co., a $4.6 billion deal announced in February.
A much grander market realignment looms in Florida, where Titan has namesake Florida Cement and Aggregates and Tarmac America ready mixed and block subsidiaries. Florida Rock’s integrated ready mixed, block, aggregate and cement business is set to become a new Vulcan division.
Potentially dwarfing the Vulcan-Florida Rock deal inside the Sunshine State and beyond is the proposed takeover of Rinker Group by Cemex S.A.B. de C.V. Subject to a buyout offer running through May 18, that deal would include the assimilation of Florida’s deeply integrated market leader, Rinker Materials Corp., into the Southeast operations of Cemex USA.