Taiheiyo Cement Corporation has confirmed it has struck a deal with Vulcan Materials for ready-mixed concrete assets in California.
Following the deal, Taiheiyo’s subsidiary CalPortland Company will acquire Vulcan’s ready-mixed concrete business assets in California. The deal is subject to conditions but is expected to be finalised by the end of 2025 according to the parties involved.
“Our company manufactures and sells cement, ready-mixed concrete, and aggregates on the US West Coast, including California. Through this acquisition, we will acquire ready-mix business assets in Northern California’s San Francisco Bay Area and Southern California’s San Diego region,” Taiheiyo Cement Corporation wrote in its announcement.
“This asset acquisition will enable us to enter Northern California’s San Francisco Bay Area, a new region previously not accessed by our ready-mix business, while improving existing ready-mix efficiencies in Southern California’s San Diego region through new logistical synergies and cost reduction initiatives, in a state where robust demand is expected to continue.
“In the San Francisco Bay Area, which is Northern California’s economic center, investments in AI-related data centers and supporting power infrastructure are anticipated. In Southern California’s San Diego region, steady housing demand due to population growth and planned urban redevelopment projects are expected, with robust ready-mix demand anticipated in both regions.”
Vulcan Materials’ ready-mix concrete assets in the California market include 41 ready-mix plants as well as two cement terminals and other assets. According to the announcement, the acquisition amount is said to be $712 million through a cash settlement.
“In addition, acquisition of the assets will provide CPC with stable demands for the cement produced at CPC’s plants, as well as cement and supplementary cementitious materials imported from our group companies and our partners. This will also provide us with new synergies and sales opportunities going forward,” Taiheiyo Cement Corporation wrote in its announcement.
“Through this transaction, we expect to achieve steady growth in both sales and profits by strengthening the revenue base of our US ready-mix business, enhancing our supply chain including our group’s trading network, and expanding low carbon supplementary cementitious materials initiatives.”
