Cementos Argos and Quikrete have come to an agreement surrounding the sale of Summit Materials.
Cementos Argos has confirmed it has completed the sale of its 31 per cent stake in Summit Materials for a total of USD $2.875 billion, equivalent to a price of USD 52.5 per share. It comes a year after the company was part of a transaction with Summit Materials to combine their US assets.
At the time, the deal between Cementos Argos and Summit was heralded as a “transformative” for the US market.
“Together, we now have an unrivalled, materials dominant, platform featuring significant scale and an advantaged geographic footprint,” Summit Materials president and chief executive Anne Noonan said at the time.
Cementos Argos said the deal would strengthen its financial position and potential unlock a “new phase” of expansion.
“This transaction provides Cementos Argos with the freedom to explore new opportunities in its cement, concrete, and aggregates businesses in the United States without any restrictions, and allowing it to continue capturing value in the US market,” Cementos Argos said in a release.
“The company will leverage its extensive knowledge and successful track record in the country, as well as its well-established export capacity and connectivity with its operations in the Caribbean, Central America, and Colombia.
“At the same time, most of the ancillary agreements negotiated during the combination with Summit Materials (now Quikrete Holdings), including the supply of materials via exports from Cartagena to the United States, will continue to operate as agreed.
“The completion of this transaction marks the beginning of a new chapter in the history of Cementos Argos in the United States and the Americas.”
Following Cementos Argos’ announcement, Summit Materials confirmed it had finalised the sale of 100 per cent of its shares to Quikrete Holdings. The deal was first rumoured late last year before Summit Materials confirmed the speculation and details of the agreement.
The agreement between Summit and Quikrete will see the former become a privately held subsidiary of Quikrete, cease trading on the New York Stock Exchange, and not be listed on any public market.
According to Summit, the definitive agreement is for $52.50 per share in cash, for a total enterprise value of approximately $11.5 billion, including debt.
Quikrete is a privately owned family business based in Atlanta, Georgia. The company specialises in building materials which are sold into the US and Canadian commercial, residential, construction and infrastructure markets primarily.
