Summit closes Metro RM of Utah and companion Missouri, Texas deals

Sources: Summit Materials, Denver; CP staff

Summit Materials has opened 2018 acquiring Metro Ready Mix in Salt Lake City; Price Construction Co., a west Texas aggregates and asphalt producer and contractor; and, Mertens Construction Co., a central Missouri aggregates producer. At $120 million combined, the deals strengthen the integrated producer’s platform businesses Kilgore Cos., West Valley City, Utah; Troy Vines Inc., Midland, Texas; and, ConAgg of Missouri, Columbia.

“All three transactions further establish our presence in growing markets characterized by favorable long-term demographic trends,” says Summit CEO Tom Hill. “Looking ahead, we currently have several materials-based, bolt-on transactions currently in diligence that we expect will close in the near future.

The producer noted 2018 development activity in an upbeat report on 2017 revenue growth from organic-sales increases and 14 acquisitions totaling $420 million. “Our team delivered exceptional full-year results that exceeded the high-end of our Adjusted EBITDA guidance range,” Hill affirms. “We generated significant year-over-year growth in net revenue, operating income and net income.”

Summit reported 2017 sales of $1.75 billion, up 17.7 percent from $1.48 billion the prior year, and Adjusted EBIDTA (earnings before interest, taxes, depreciation and amortization) of $436 million, up 17.4 percent from $371 million in 2016. Of net revenues last year, ready mixed concrete accounted for $492 million; aggregates, $313 million; and, cement, $282 million. In 2018 guidance, Summit projects Adjusted EBITDA of $490 million to $510 million, including figures from the early-2018 acquisitions.