|Concrete Products visited in July 2006 and May 2009, respectively, two of the Virginia properties now under Summit Materials: Boxley Block, a twin-machine operation in Lynchburg; and the National Ready Mixed Concrete Association Commitment to Environmental Excellence Award-winning Roanoke plant.|
Summit Materials Inc. has closed on key aggregate, concrete and asphalt production assets of Roanoke, Va.-based Boxley Materials Co., a 114-year-old operator serving Virginia and West Virginia. A definitive agreement on the deal was announced shortly after Summit closed on Wilmington, N.C.-based American Materials Co., with five sand & gravel operations in the Carolinas.
“These high-quality businesses are a perfect fit with our materials-based acquisition strategy, increase our geographical diversity and create a platform of scale in the high-growth Mid-Atlantic area,” affirms Summit CEO Tom Hill. “Both possess market leading positions and experienced and entrepreneurial management.” Ab Boxley and Tim Bizzell, he adds, will remain at the helm of Boxley Materials and American Materials.
The combined businesses represent an approximately $250 million outlay and encompass 11 aggregate, four ready mixed, one concrete masonry and four asphalt plants. They create a Mid-Atlantic platform that Summit Materials will likely expand through smaller, bolt-on acquisitions—following a model that has netted the Denver-based producer sizable aggregate, concrete and asphalt market positions in Kentucky, Missouri, Kansas, Texas and Intermountain states.
TITAN SHELVES PLAN FOR CAROLINA CEMENT PLANT
After years of permitting and pre-construction activities, Titan America has shelved plans for a Castle Hayne, N.C., cement plant with up to 2 million tons’ annual capacity, but will maintain a terminal on the site, located just outside the coastal town of Wilmington.
“Our decision is driven by economics,” affirms CEO Bill Zarkalis. “The pace of demand growth in the specific markets does not seem adequate to justify the addition of substantial new production capacity—more so because the costs to construct a new cement plant in the United States have risen substantially in the past few years. The overall risk profile of the project has worsened as new coastal capacity in North Carolina could be vulnerable to cement imports, considering the strong U.S. dollar, global cement supply situation and low ocean freight costs.”
Athens-based parent, Titan Group, “continues to be committed to long-term growth in the United States,” he adds. “Titan America has emerged strong from the unprecedented crisis in the construction industry. We hold leading positions in the markets we operate across the Eastern U.S. and are once again experiencing significant growth, together with our customers. To fuel growth, we are investing in excess of $250 million between 2014 and 2016. Titan America continues to evaluate opportunities for accelerated and sustainable growth. The Castle Hayne option simply does not meet our economic criteria.”
Titan America serves North Carolina customers from its Roanoke, Va., cement plant with an integrated logistics network of distribution terminals, warehouses and 20-plus ready mixed concrete plants. Notes Mid-Atlantic Business Unit President Robert Sells, “North Carolina is an attractive place to do business and we remain committed to continue to grow here. We’ve had operations here for more than 20 years and value our relationships with customers, suppliers and the community overall. All of our existing North Carolina operations will continue to run the way they have; no jobs in these operations will be affected by this decision.”