(Reuters) -Summit Materials said on Monday rival Quikrete would acquire the company in a cash deal valued at $11.5 billion, in a move to capitalize on higher demand for building materials.
The sector has seen increased deal-making activity due to rising U.S. government infrastructure spending and anticipation of growing demand for materials.
Privately held Quikrete had approached Summit with an acquisition offer in October, Reuters had reported.
The concrete maker’s $52.50 per share offer represents about a 29.2% premium to Summit’s closing price on Oct. 23, a day before Reuters reported the talks.
Founded in 1940, Atlanta, Georgia-based Quikrete is one of the largest manufacturers of packaged concrete and cement mixes in North America.
Denver, Colorado-based Summit is a provider of construction materials such as cement, ready-mix concrete and asphalt. It also offers services such as construction and paving.
Morgan Stanley (NYSE:) and Evercore acted as financial advisors to Summit, while Davis Polk & Wardwell LLP served as its legal advisor.
Wells Fargo (NYSE:) served as a financial advisor to Quikrete and provided a debt-financing commitment for the transaction.
The transaction is expected to close in the first half of 2025.
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