U.S. Concrete, an aggregates and ready-mixed concrete supplier to developers and builders based in Euless, Texas, will merge with Vulcan Materials Co., the companies announced on June 7.
Vulcan is a producer of aggregates and is looking to the acquisition of U.S. Concrete, one of its existing customers, to break into the ready-mixed space as the development environment continues to sizzle and investors continue to welcome efforts towards strategic, vertical consolidation.
U.S. Concrete shares were up nearly 30% in early trading upon the announcement of the deal.
U.S. Concrete – with Paul M. Jolas serving as senior vice president, general counsel and corporate secretary – tapped Gibson, Dunn & Crutcher and Akin Gump Strauss Hauer & Feld as legal advisors.
New York partners Steven Shoemate and Andrew Kaplan led the Gibson Dunn team.
Evercore and BNP Paribas Securities Corp. acted as financial advisors to U.S. Concrete.
Wachtell, Lipton, Rosen & Katz and Bradley Arant Boult Cummings served as legal counsel to Birmingham-based Vulcan, while The Greystone Group acted as financial advisor.
New York partners Igor Kirman and Elina Tetelbaum led the Wachtell Lipton team, while Birmingham partner Michael Thomason led the Bradley team.
Denson N. Franklin III, senior vice president, general counsel and secretary, led the in-house team at Vulcan.
Vulcan will pay $74 per share in cash for all issued and outstanding common shares for U.S. Concrete for an equity value of $1.294 billion.
Truist Securities is handling Vulcan’s committed financing for the transaction, which involves a $2.2 billion bridge loan with additional participation from Truist Bank.
“Our combined organization will share an extensive and successful track record of acquisitions and greenfield development, and we look forward to working with (Tom Hill, chairman and CEO of Vulcan Materials Co.,) and the entire Vulcan family to close this transaction and integrate our two strong businesses,” Ronnie Pruitt, who was named U.S. Concrete’s chief executive in early 2020, said in a statement.
Pruitt succeeded Bill Sandbrook, who the company credited with the broadening of its focus beyond ready-mixed concrete to heavy construction aggregates and more vertically integrated ready-mix operation with a much broader footprint.
Last year, U.S. Concrete, the 53rd largest publicly traded company in North Texas by revenue according to Dallas Business Journal research, shipped 12.6 million tons of aggregates from its 27 aggregates operations that serve Texas, California and the Northeast U.S.
U.S. Concrete’s reach in Texas reflects a key area of growth for Vulcan, while its footprint in New York and New Jersey complements Vulcan’s existing one.
The deal has already been approved by both boards of directors and is expected to close in the second half of the year.