Sources: CP staff; Oldcastle Materials Inc., Atlanta; The Orr Group, Winston-Salem, N.C.
By Don Marsh
The acquisition of Central Supply Inc. and Central Trucking brings Oldcastle Materials concrete capacity in West Virginia, another state of low- to moderate population density or growth where the company eyes a ready mixed production platform.
The Clarksburg, W.Va.-based businesses span one concrete block and six ready mixed plants, with 60-plus mixer fleet; five building supply stores; and, a trucking division serving West Virginia, Pennsylvania, Maryland and the Marcellus Shale region. They join the Oldcastle Materials Mid-Atlantic Division, anchored by Pennsy Supply in Harrisburg, Pa. Prior to Central Supply and Central Trucking, the division had established West Virginia presence through the aggregate, asphalt and road-building businesses of Appalachian Material Group and West Virginia Paving Inc., both in Dunbar. The former is among Central Supply’s aggregate sources.
“For almost 100 years, Central Supply has been providing customers with high quality products and services. It’s a tradition that will continue,” says Appalachian Materials Group North President Willie Crane. “We welcome our new employees and look forward to expanding our services to the region.”
Central Supply President George Finly, who along with other existing managers have transitioned to Oldcastle Materials, credits completion of the transaction in a “thorough, timely and successful manner” to merger & acquisition adviser Orr Group. The investment banker provided Central shareholders advice on setting valuation expectations, conducting a defined marketing process, and structuring the transaction toward its successful closing.
Oldcastle Materials is the second multinational company-backed operator to stake claim in the West Virginia ready mixed concrete market, following Essroc Cement’s 2007 acquisition of Wheeling-based Arrow Concrete, now Essroc Ready Mix. Otherwise, West Virginia presents a profile similar to Ohio and Iowa, where Oldcastle Materials entered a fragmented market and built strong positions in ready mixed from platform operators Shelly Co. and American Concrete.