U.S. Concrete Cements $1.3 Billion Merger Deal with Vulcan Materials
Source: Streetwise Reports 06/07/2021
Shares of U.S. Concrete Inc. traded 29% higher after the company reported it entered into a definitive merger agreement to be acquired by Vulcan Materials for $74 per share in cash, equating to a total equity value of $1.294 billion.
Prior to the opening of U.S. markets today, ready-mixed concrete and aggregate products company U.S. Concrete Inc. (USCR:NASDAQ) announced that it entered into a definitive agreement to be acquired by Vulcan Materials Co. (VMC:NYSE), a major producer of aggregates-based construction materials, for $74.00 per share in cash, representing a total equity value of $1.294 billion.
The company advised that the agreement stipulates that Vulcan Materials will acquire 100% of the issued and outstanding shares of U.S. Concrete’s common stock and that the merger has already been unanimously approved by each respective company’s Board of Directors. The firm noted that the transaction is expected to close in H2/21, but remains subject to acceptance by U.S. Concrete’s shareholders along ordinary closing conditions and regulatory approval.
U.S. Concrete stated that its operations, many of which are located within large metropolitan areas, will serve to greatly complement and be a “natural addition” to Vulcan’s existing footprint. Specifically, the report advised that that U.S. Concrete “presently has 27 aggregates operations serving California, Texas and the Northeast, that shipped 12.6 million tons in 2020.”
According to details outlined in the report, U.S. concrete’s added business will provide Vulcan with access to blue-water source of high-quality aggregates reserves and enhance its position in high-growth regions throughout Texas as well as in the New York and New Jersey metro areas.
Vulcan Materials’ Chairman and CEO Tom Hill commented, “U.S. Concrete is an important Vulcan customer in a number of key areas and this transaction is a logical and exciting step in our growth strategy as we further bolster our geographic footprint…This is a merger of two corporate cultures that value people, technology, operating disciplines, customer service and the entrepreneurial spirit and it positions Vulcan to further drive sustainable, long-term shareholder value.”
U.S. Concrete’s President and CEO Ronnie Pruitt remarked, “Today’s announcement that we are combining with Vulcan, a leading producer of construction aggregates, marks a major milestone in U.S. Concrete’s history…Our combined organization will share an extensive and successful track record of acquisitions and greenfield development, and we look forward to working with Tom and the entire Vulcan family to close this transaction and integrate our two strong businesses.”
Vulcan Materials is based in Birmingham, Ala., and has a market cap of about $24 billion. The company is a large producer of construction aggregate primarily crushed stone, sand and gravel. In addition, the firm is a maker and supplier of aggregates-based construction materials such as asphalt and ready-mixed concrete.
U.S. Concrete is headquartered in Euless, Tex., and describes itself as “a leading supplier of aggregates and concrete for infrastructure, residential and commercial projects across the country.” The firm noted that it has historically grown its business both organically and by strategically acquiring several independent producers. The report noted that U.S. Concrete has a strong market presence in many large high-growth metropolitan markets including the Dallas/Fort Worth, New York City, Philadelphia, San Francisco and Washington, D.C. areas.
U.S. Concrete started off the day with a market cap of around $970.1 million with approximately 16.98 million shares outstanding and a short interest of about 5.2%. USCR shares opened more than 28% higher today at $73.3345 (+$16.1945, +28.34%) over Friday’s $57.14 closing price. The stock has traded today between $73.10 and $74.19 per share and is currently trading at $73.75 (+$16.61, +29.07%).
Sign up for our FREE newsletter at: www.streetwisereports.com/get-news
Disclosure:
1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.
( Companies Mentioned: USCR:NASDAQ, )
Source: https://www.streetwisereports.com/article/2021/06/07/u-s-concrete-cements-1-3-billion-merger-deal-with-vulcan-materials.html
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world. Anyone can join. Anyone can contribute. Anyone can become informed about their world. "United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
LION'S MANE PRODUCT
Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules
Mushrooms are having a moment. One fabulous fungus in particular, lion’s mane, may help improve memory, depression and anxiety symptoms. They are also an excellent source of nutrients that show promise as a therapy for dementia, and other neurodegenerative diseases. If you’re living with anxiety or depression, you may be curious about all the therapy options out there — including the natural ones.Our Lion’s Mane WHOLE MIND Nootropic Blend has been formulated to utilize the potency of Lion’s mane but also include the benefits of four other Highly Beneficial Mushrooms. Synergistically, they work together to Build your health through improving cognitive function and immunity regardless of your age. Our Nootropic not only improves your Cognitive Function and Activates your Immune System, but it benefits growth of Essential Gut Flora, further enhancing your Vitality.
Our Formula includes: Lion’s Mane Mushrooms which Increase Brain Power through nerve growth, lessen anxiety, reduce depression, and improve concentration. Its an excellent adaptogen, promotes sleep and improves immunity. Shiitake Mushrooms which Fight cancer cells and infectious disease, boost the immune system, promotes brain function, and serves as a source of B vitamins. Maitake Mushrooms which regulate blood sugar levels of diabetics, reduce hypertension and boosts the immune system. Reishi Mushrooms which Fight inflammation, liver disease, fatigue, tumor growth and cancer. They Improve skin disorders and soothes digestive problems, stomach ulcers and leaky gut syndrome. Chaga Mushrooms which have anti-aging effects, boost immune function, improve stamina and athletic performance, even act as a natural aphrodisiac, fighting diabetes and improving liver function. Try Our Lion’s Mane WHOLE MIND Nootropic Blend 60 Capsules Today. Be 100% Satisfied or Receive a Full Money Back Guarantee. Order Yours Today by Following This Link.
