Major Acquisitions Arising in the Concrete, Aggregates, and Cement Industries
The economy is solid and most industries are growing. Economic momentum supported by the recent tax reform and federal infrastructure programs brings good news for those of us in the construction, concrete, cement and aggregates industries. Last week the World of Concrete attracted 60,000 registered professionals, the largest gathering of the event in nine years, proving that the construction sector is going strong on a global basis. Many executives are seeing favorable growth for their businesses over the next few years. As a result, major mergers and acquisitions are ramping up as well, including:
· Vulcan Materials acquired Aggregates USA, which operates 31 facilities service markets throughout the Southeast. The company also acquired Lebanon, Tennessee-based LoJac Holdings Corp.’s asphalt, construction, safety and Monterey Sand operations.
· Martin Marietta purchased Bluegrass Materials for $1.625B, providing the company with access to new markets.
· CRH, Oldcastle’s parent company, bought Ash Grove Cement for $3.5B. According to Reuters, Ash Grove is the fifth-largest cement manufacturer in North America. CRH purchased Mulzer Crushed Stone, one of the largest privately held aggregate producers, in 2017.
· Lehigh Hanson purchased Pacific Northwest Materials, a Cemex subsidiary providing aggregate, asphalt and ready-mix concrete operations in 2017.
· Summit Materials completed six acquisitions in 2017, which includes four since February, which give the company about 90 million tons of permitted aggregate reserves, quarries, ready-mix concrete plants, paving operations and an asphalt plant.
· US Concrete announced the acquisition of Cherokee Bridge and Road Inc., a ready-mixed concrete producer in West Texas. This follows US Concrete’s purchase of Polaris Materials Company in late 2017.
· Kryton International Inc. acquired Cementec Industries Inc., a manufacturer of concrete additive solutions for the construction, oil and gas industries.
· PB Materials Holdings, Inc., a leading, regional producer of aggregates and ready mix concrete in the Permian Basin has completed the simultaneous acquisitions of ARM Trucking Limited Company ("ARM Concrete"), Kermit Concrete Co. LLC ("Kermit Concrete") and WUUD Aggregate, LLC ("WUUD Aggregate").
· Deere & Company acquired Wirtgen Group, a worldwide manufacturer of road construction equipment.
· HawkeyePedershaab acquired New Hampton Metal Fab, a leading manufacturer of form equipment for the Pipe & Precast concrete industry, in September of 2017.
Many of these businesses are Command Alkon customers. We extend best wishes, and look forward to continued success with these companies.