An $11 bln concrete deal is about unset options
25/11/2024 19:14
(The author is a Reuters Breakingviews columnist. The opinions
expressed are his own.)
By Robert Cyran
NEW YORK, Nov 25 (Reuters Breakingviews) - Quikrete is
buying building materials peer Summit at a so-so multiple,
despite a rush of subsidy-bolstered US construction. If the pace
keeps up amid easing interest rates, it’s smart vertical
integration. If a new Trump era wrecks that forecast, there are
obvious units to sell.
Full view will be published shortly.
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CONTEXT NEWS
Summit Materials said on Nov. 25 it had agreed to be
acquired by Quikrete in a deal valued at $11.5 billion,
including debt. The purchase price, at $52.50 a share in cash,
represents a 29% premium to Summit’s closing price before
Reuters reported news of talks between the companies in October.
Quikrete is a privately-held company based in Georgia, and
one of the largest manufacturers of packaged concrete and cement
in North America.
Summit makes construction materials including cement,
ready-mix concrete and aggregates.
(Editing by Jonathan Guilford and Pranav Kiran)
((For previous columns by the author, Reuters customers can
click on CYRAN/
robert.cyran@thomsonreuters.com))