Summit Materials has confirmed it will enter into a definitive agreement to be acquired by Quikrete following weeks of speculation.
The US-based aggregates and cement producer has entered into the deal for $52.50 per share in cash, for a total enterprise value of approximately $11.5 billion, including debt.
“We are pleased to have reached this agreement which will deliver significant, immediate and certain cash value to our shareholders,” said Howard Lance, chairman of Summit’s board of directors.
“In reaching this decision, our board carefully considered a range of alternatives and determined that this transaction is the best way to maximise value for our shareholders.”
Anne Noonan, president and chief executive officer of Summit Materials added: “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.”
According to the public release, the transaction price represents an approximately 36 per cent premium to Summit’s unaffected 90-day volume weighted average price (VWAP)1 and an approximately 29 per cent premium to Summit’s unaffected share price. The combination has been unanimously approved by the Summit and Quikrete’s boards of directors.
The two companies expect the deal to close in the first half of 2025 but it is subject to approval from Summit Materials’ shareholders, regulatory approvals and other customary closing conditions. Summit’s largest shareholder, Cementos Argos, has thrown its support behind the transaction after entering an agreement to commit all of its shares in Summit’s common stock in favour.
If the transaction is approved and completed, Summit will become a privately held subsidiary of Quikrete.
“We are thrilled to welcome Summit into the Quikrete family,” said Will Magill, chief executive officer of Quikrete. “This acquisition represents a significant milestone in our journey to expand our capabilities and geographic presence.
“Summit is a recognised 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.”
