Aggregates and cement producer Summit Materials announced it has entered into a definitive agreement to be acquired by Quikrete Holdings for $52.50 per share in cash, for a total enterprise value of about $11.5 billion, including debt. The deal price represents an approximately 36% premium to Summit’s unaffected 90-day volume weighted average price (VWAP)1 and an approximately 29% premium to Summit’s unaffected share price. The Summit and Quikrete Boards of Directors have unanimously approved this combination.
The deal combines Summit’s leading aggregates, cement, and ready-mix concrete businesses with Quikrete’s leading concrete and cement-based products business to create a vertically integrated North American construction materials solutions provider with strong customer relationships and iconic products.
The deal is expected to close in the first half of 2025, subject to Summit shareholder approval, regulatory approvals, and other customary closing conditions. Upon completion, Summit will become a privately held subsidiary of Quikrete, and its common stock will no longer be traded on the NYSE.
Summit’s largest shareholder Cementos Argos had entered into an agreement pursuant to which it has committed to vote all of its shares of Summit’s common stock in favor of the deal. And Quikrete has obtained commitment letters for the financing necessary to complete the transaction, which is not subject to a financing condition.
Morgan Stanley and Evercore are acting as financial advisors to Summit, and Davis Polk & Wardwell is acting as legal advisor. Wells Fargo is acting as exclusive financial advisor to Quikrete, and Troutman Pepper Hamilton Sanders and Covington & Burling are acting as legal counsel. Wells Fargo has provided a debt financing commitment for the deal.
KEY QUOTES:
“We are pleased to have reached this agreement which will deliver significant, immediate and certain cash value to our shareholders. In reaching this decision, our Board carefully considered a range of alternatives and determined that this transaction is the best way to maximize value for our shareholders.”
– Howard Lance, Chairman of Summit’s Board of Directors
“This combination, and the value it creates, is a testament to our stellar strategic and financial performance, agile operational and commercial execution, and to the strength and talent of our entire team who have delivered a 34.6% annualized return since we began to develop our Elevate strategy on September 1, 2020. We believe this transaction will create new and exciting opportunities for our employees and customers. In Quikrete, we have found a strong partner that shares our commitment to safety and innovation, and we are excited to join forces with their team.”
– Anne Noonan, Summit Materials President and Chief Executive Officer
“We are thrilled to welcome Summit into the Quikrete family. This acquisition represents a significant milestone in our journey to expand our capabilities and geographic presence. Summit is a recognized leader with a highly complementary portfolio of trusted aggregate, cement and ready-mix solutions. We look forward to working closely with the talented team at Summit to achieve our shared vision for the future.”
– Will Magill, Chief Executive Officer of Quikrete
