Quikrete is in talks to acquire Summit Materials, sources say (updated)

Summit Materials

24/10/2024 21:33

(Adds more background and details on the talks)
    By Anirban Sen
       NEW YORK, Oct 24 (Reuters) - Building materials provider
Quikrete has approached rival Summit Materials  SUM.N , which
has a market value of more than $7 billion, with an acquisition
offer, people familiar with the matter said on Thursday. 
    Quikrete, which is privately held, is working with its
advisers on the bid for Summit Materials and the talks are at an
early stage, the sources said, requesting anonymity as the
discussions are confidential. 
    Summit Materials, whose shares had risen about 6% till
Wednesday's close, trades at a discount to peers like Vulcan
Materials  VMC.N  and Martin Marietta Materials  MLM.N , making
it an attractive acquisition target. 
    Quikrete and Summit Materials did not immediately respond to
requests for comment. 
    The talks come as increased U.S. government spending on
infrastructure has boosted prospects for suppliers of building
products. 
    Earlier this year, Miter Brands, which is backed by Koch
Industries, agreed to buy PGT Innovations, a U.S. maker of vinyl
and aluminum doors and windows, for $3.1 billion, including
debt. 
    Founded in 1940, Atlanta, Georgia-based Quikrete is one of
the biggest manufacturers of packaged concrete and cement mixes
in North America. 
    Denver, Colorado-based Summit Materials is a provider of
construction materials such as cement, ready-mix concrete, and
asphalt and also offers services such as construction and
paving. Last year, Summit struck a $3.2 billion deal to merge
with the U.S. business of Colombia-based building materials
company Cementos Argos. 
    Both Quikrete and Summit operate in the U.S. and Canada. 
    Summit Materials shares closed up more than 6% on Thursday
after Bloomberg reported on the talks. 

 (Reporting by Anirban Sen in New York, additional reporting by
Sabrina Valle; Editing by Leslie Adler and Lisa Shumkaer)
 ((Anirban.Sen@thomsonreuters.com; Twitter: @asenjourno; Reuters
Messaging: Signal/Telegram/Whatsapp - +1-646-705-9409))