Atlanta-based Quikrete Holdings LLC acquired all outstanding Forterra Inc. shares late last month and established the Irving, Texas concrete pipe, drainage structure, structural precast and ductile iron pipe giant as a wholly owned subsidiary. The incoming assets significantly extend the drainage and short-span bridge market footprints of sister Quikrete businesses, Rinker Pipe and Contech Engineered Solutions; add precast, prestressed plants serving building and transportation markets; and, bring a commanding water supply infrastructure position via Forterra’s US Pipe franchise.
The takeover was consummated just ahead of a target date indicated in a February 2021 announcement of Quikrete’s $24/share offer for Forterra—subject to regulatory approvals.
Three proposed transactions involving Forterra and Rinker plants serving coastal states from Virginia to Texas appear to have enabled the $2.3 billion transaction to proceed without U.S. Department of Justice Antitrust Division encumbrances.
In November and December, the producers announced agreements to sell a) Forterra’s 50 percent stake in Concrete Pipe & Precast LLC, Ashland, Va. to partner Eagle Corp.; and, b) a package of Southeast market assets, topped by Forterra’s St. Martinville, La. pipe and precast plant to Foley Products of Georgia. In February, an agreement was entered to sell Rinker Pipe plants in Dallas, Houston and San Antonio to Oldcastle Infrastructure.
Closing of those transactions will have minimal bearing on the combined businesses’ scale in environmental infrastructure: Rinker Pipe and Forterra Precast produce concrete drainage and sewer pipe, plus companion structures, at more than 50 sites in 29 states, Ontario and Quebec. Nearly all of their operations hold American Concrete Pipe Association Qcast certification. Eight sister architectural or structural plants carry Precast/Prestressed Concrete Institute certification.
Forterra ushers an extensive range of box culvert, elliptical and round pipe to mirror Rinker Pipe offerings, while also affording Quikrete a new subsidiary: US Pipe, a top operator in ductile iron products for water supply and wastewater conveyance.