Sources: Vulcan Materials Co., Birmingham, Ala.; CP staff
Vulcan Materials has reached a definitive agreement with Mill Valley, Calif., investor SPO Partners to acquire Aggregates USA LLC for $900 million. The cash deal is the second nine-figure transaction this year involving rock production and distribution assets, following CRH/Oldcastle Materials’ planned takeover of Indiana-based Mulzer Crushed Stone, announced in March.
Aggregates USA brings Vulcan 15 quarries and 16 aggregate distribution facilities serving Florida, Georgia, South Carolina, Tennessee and Virginia markets. “With the addition of these assets, [we] will be able to capitalize on continuing increases in state highway funding programs and private sector growth across the region,” says Vulcan CEO Tom Hill. “This transaction will provide Vulcan with long-term high quality reserves across the entire portfolio. Aggregates USA operates efficient, high productivity facilities run by strong teams, and we welcome them to our company.”
The acquisition complements Vulcan’s service offerings in Georgia with three granite quarries, two with rail capabilities extending the company’s reach into important markets, plus Florida, Georgia and South Carolina rail distribution yards. It also includes 12 limestone quarries in eastern Tennessee and southwest Virginia. Vulcan may divest certain Tennessee sites to expedite regulatory approval of the Aggregates USA transaction.