The speculation surrounding Quikrete’s acquisition of Summit Materials concluded on Monday, as both companies announced a substantial agreement valued at $11.5 billion. This merger will integrate Summit’s aggregate, cement, and ready-mixed concrete sectors with Quikrete’s concrete and cement-based offerings. The boards of directors from both firms unanimously endorsed the deal.
Will Magill, CEO of Quikrete, expressed enthusiasm, stating, “We are excited to welcome Summit into the Quikrete family. This acquisition marks a pivotal point in our mission to enhance our capabilities and broaden our geographical reach. Summit is a respected leader with a portfolio that complements our own trusted aggregate, cement, and ready-mix solutions. We anticipate collaborating closely with Summit’s talented team to realize our shared vision for the future.”
Summit noted that the acquisition price reflects approximately a 36 percent premium over its unaffected 90-day volume-weighted average share price and a roughly 29 percent premium over its unaffected stock price.
Howard Lance, chairman of Summit’s board, remarked, “We are delighted to have finalized this agreement, which promises substantial, immediate cash value to our shareholders. In making this decision, our board meticulously evaluated various options and concluded that this transaction is the optimal route to maximize shareholder value.”
Anne Noonan, president and CEO of Summit Materials, emphasized that Quikrete aligns with her company’s dedication to safety and innovation. “This merger and the value it generates showcase our outstanding strategic and financial performance, nimble operational execution, and the exceptional talent of our team, who have achieved an annualized return of 34.6 percent since we initiated our Elevate strategy on September 1, 2020,” Noonan asserted. “We believe this transaction will open new and exciting avenues for our employees and customers.”
Last month, Summit Materials disclosed that it had received a non-binding acquisition offer, with Bloomberg reporting that Quikrete was the interested party. Established in 1940, Quikrete claims to be the largest producer of pre-blended, packaged concrete and cementitious products in North America.
