Sources: U.S. Concrete Inc., Euless, Texas; CP staff
A definitive equity purchase agreement with Boardman family trustees will net U.S. Concrete subsidiary Central Concrete Supply Co., San Jose, the assets of San Francisco-based Bode Concrete LLC and Bode Gravel Co.
With a scheduled fourth-quarter closing, the transaction calls for a $24.5 million initial cash payment, plus up to $7 million in earn-out disbursements over the next six years. It includes a 3.3-acre Port of San Francisco Pier 92 site with central, transit mixed and portable concrete plants, plus a high-capacity mix reclaiming and water recycling facility. Equipped for 900,000 gallons of storm and process water storage, the latter serves a 41-mixer fleet; trucks from another operator Bode loads, Allied Concrete; and, outside concrete pump and municipal dump truck customers.
Bode Concrete logged nearly 250,000 yd. of ready mixed deliveries in 2011 from Pier 92, which becomes Central Concrete’s 12th Bay Area location. Sandwiched by Hanson Aggregates marine sand dredging and Cemex ready mixed operations, the site is approximately three miles from a Central Concrete portable plant supplying a Caltrans contract along the Presidio and Golden Gate Bridge approach.
“Bode Concrete has a long and proud history of servicing the greater San Francisco construction market as the city’s preeminent supplier of ready mix concrete,” says U.S. Concrete CEO William Sandbrook. “We look forward to continuing Bode’s reputation of environmental stewardship, quality production and unparalleled customer service as we welcome [the business] into our network of greater Bay area operations.”
The Bode asset outlay approximates proceeds U.S. Concrete has realized from two California transactions in the past three months: The $21.5 million sale of six underground, utility, architectural and structural product plants to Oldcastle Precast, and a $3.35 million sale of a South San Francisco property. The San Francisco investment continues U.S. Concrete’s strategy of shoring up major market positions, evidenced most recently with bolt-on deals for its Eastern Materials business in metro New York and Redi-Mix and Ingram businesses in Texas.