Quikrete Holdings has signed a definitive agreement to acquire Summit Materials, which produces aggregates and cement, for an enterprise value of approximately $11.5bn, including debt.
The all-cash transaction is valued at $52.50 per share.
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This acquisition price reflects a significant premium over Summit’s recent share performance. The board of directors of both Summit and Quikrete have unanimously approved the transaction.
The deal will merge the aggregates, cement, and ready-mix concrete businesses of Summit with Quikrete’s concrete and cement-based products business. This combination aims to create a comprehensive North American provider of construction materials solutions.
The acquisition is expected to be finalised in the first half (H1) of 2025, pending approval from Summit’s shareholders, regulatory clearances, and other standard closing conditions.
After the transaction concludes, Summit will operate as Quikrete’s privately held subsidiary and its shares will be delisted from the US New York Stock Exchange (NYSE).
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By GlobalDataCementos Argos, the largest shareholder of Summit, has also agreed to vote in favour of the transaction.
Quikrete has reportedly secured the necessary financing to complete the acquisition, with commitment letters already in place. The deal is not contingent upon further financing arrangements.
Financial advisory services for Summit are being provided by Morgan Stanley and Evercore while Davis Polk & Wardwell is serving as legal advisor.
Meanwhile, Quikrete has engaged Wells Fargo as its exclusive financial advisor, with Troutman Pepper Hamilton Sanders and Covington & Burling offering legal counsel. Wells Fargo has also committed to providing debt financing for the acquisition.
Summit Materials president and CEO Anne Noonan said: “This combination, and the value it creates, is a testament to our stellar strategic and financial performance, agile operational and commercial execution, and to the strength and talent of our entire team who have delivered a 34.6% annualised return since we began to develop our Elevate strategy on 1 September 2020.
“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.”
