LafargeHolcim has closed on the assets of Metro Mix LLC, a ready mixed producer with Denver and Castle Rock, Colo., plants and a payroll of 50. Metro Mix reported 2017 sales upward of $30 million and serves a fast growing market where construction is projected to remain strong thanks to large jobs and population growth.
The transaction adds to an already strong Colorado market presence LafargeHolcim enjoys through its integrated Aggregate Industries operations. “Over the past 10 years, Denver has been a dynamic and growing market, and Metro Mix has been a part of that growth by successfully meeting customer needs,” says LafargeHolcim, U.S. Aggregates & Construction Materials CEO Guy Edwards. “We see significant synergies between the Metro Mix operations and our Aggregate Industries business that will allow us to strengthen our customer service and offerings in the region.”
“This is our fourth acquisition this year in line with our Strategy 2022 – ‘Building for Growth.’ Metro Mix’s operations are highly complementary to our existing footprint and will allow us to gain a larger share in a growing market with immediate commercial and operational synergies,” adds LafargeHolcim CEO Jan Jenisch.
“The construction business is very competitive and to grow, you need to be teamed with a partner who values talented employees and customer service,” notes Keith Minor, who co-owned Metro Mix with Eric Tyrrell. “We believe in surrounding ourselves by the best employees, products, equipment and resources, and I am confident partnering with LafargeHolcim will enhance our ability to serve customers.”
Michael Haack has been named president of Dallas-based cement, aggregate, ready mixed concrete and wallboard producer Eagle Materials, and will maintain the chief operating officer title he has held since 2014. Prior to Eagle, he spent 17 years at Halliburton Energy Services, holding successively senior operating positions, culminating with management of Global Operations for Sperry Drilling, a multi-billion dollar business in the Halliburton Drilling and Evaluation Division. He holds Master and Bachelor of Science degrees in Industrial Engineering from Texas A&M University and Purdue University, respectively, and an MBA from Rice University.
“Michael has distinguished himself across all of our lines of business,” says Eagle CEO Dave Powers. Expansion of his role “reflects the company’s significant growth in recent years and the opportunity to build our leadership capacity, as we extend Eagle’s track-record as the benchmark operating performer in the industry.”
Summit Materials recently closed on Buildex Inc., Ottawa, Kan.-based proprietor of the Haydite brand of expanded shale lightweight aggregate. One of four businesses Denver-based Summit added during second quarter transactions totaling $75 million, Buildex spans two plants and 750,000 cubic yards’ capacity, and is strategic to sister cement, ready mixed, aggregate and asphalt operations in Great Plains and Intermountain states. Companion June-July deals brought Summit quarry and asphalt production assets in Olathe, Kan., plus Virginia and Texas aggregates producers Buckingham Slate and XIT.
“Our vertically integrated, multi-local strategy continues to gain momentum in regional markets, positioning Summit as an emerging leader in the North American heavy materials industry,” CEO Tom Hill told investors in a report on second quarter and year-to-date activities, adding that the company remains on pace to achieve record full-year Adjusted EBITDA [earnings before interest, taxes, depreciation and amortization] in 2018. Unfavorable Spring weather effects and higher than projected operating costs, however, compelled Summit to lower 2018 Adjusted EBITDA guidance by 7 percent—from a range of $495 million–$515 million to $460 million–$480 million.
“The pace of cost inflation in raw materials, freight, labor and fuel exceeded our expectations in the first half of 2018,” Hill affirmed. “Although we anticipated some measure of cost inflation entering the year, the effective date of our announced price increases lagged behind the impact of higher costs incurred by our business. Importantly, our average selling prices on both materials and products have gained traction entering the third quarter, which we expect will offset these higher variable costs in the second half.”
Separately, Summit Materials appointed Anne Cooney and Susan Ellerbusch as new independent directors, bringing the cement, concrete and aggregate producer’s board to 10 members. Concurrently, charter director Neil Simpkins will depart the board at the close of the Summit’s fiscal year. As president of the Alpharetta, Ga.-based Process Industries and Drives Division of Siemens Industry, Cooney leads operational and commercial activities for a portfolio of Siemens AG products and services across process automation, low and medium voltage motors and drives. She previously served in managerial roles with Aladdin Industries and General Electric, and is also a director of Manitowoc Co. With a 25-year tenure in the chemicals and energy industries, Ellerbusch is chief executive officer of Air Liquide USA, responsible for the company’s Large Industries and Electronics businesses. Prior to Air Liquide, she held leadership roles at BP, most recently serving as Biofuels North America president.