BIRMINGHAM, Ala., May 25, 2017 /PRNewswire/ -- Vulcan
Materials Company (NYSE:VMC), the nation's largest producer of
construction aggregates, today announced that it has reached a
definitive agreement with SPO Partners to acquire its aggregates
business, Aggregates USA LLC for
$900 million in cash.
Aggregates USA LLC operates 31
facilities serving high growth markets in Georgia, Florida, Tennessee, South
Carolina and Virginia.
"We are pleased to have reached agreement with SPO Partners for
these strategic assets, which enhance our ability to serve high
growth markets throughout the southeastern U.S.," said Vulcan's
Chairman and Chief Executive Officer Tom
Hill. "With the addition of these quarries and related
assets, Vulcan will be able to capitalize on continuing increases
in state highway funding programs in Georgia, Florida, South
Carolina, Tennessee, and
Virginia, and on the continued
private sector growth across the region. This transaction
will provide Vulcan with long-term high quality reserves across the
entire portfolio. Aggregates USA operates efficient, high productivity
facilities run by strong teams, and we welcome them to our
Company."
The acquisition complements and expands Vulcan's service
offerings in Georgia with three
granite quarries – two of which have rail capabilities extending
the Company's reach into important markets – along with 16 rail
distribution yards in Georgia,
South Carolina and Florida.
In addition, the acquisition includes 12 limestone quarries in
eastern Tennessee and southwest
Virginia. Vulcan may divest several quarries in Tennessee to a third party in order to
expedite the regulatory approval process.
The transaction is subject to customary closing conditions and
regulatory provisions under the Hart-Scott-Rodino Act. Vulcan
expects the transaction to be accretive to the Company's earnings
per share in the first year following the close.
SPO Partners is a Mill Valley,
California-based investment partnership that employs a
long-term, value-oriented and highly concentrated approach to
investing in companies in the public and private markets.
With over $7 billion in assets under
management, SPO invests across a wide range of industries including
basic materials, media, telecom, energy, power and real estate.
Vulcan Materials Company, a member of the S&P 500 index with
headquarters in Birmingham,
Alabama, is the nation's largest producer of construction
aggregates and a major producer of other construction
materials. For additional information about Vulcan, go to
www.vulcanmaterials.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of applicable federal securities laws that are based
upon our current expectations and assumptions concerning future
events, which are subject to a number of risks and uncertainties
that could cause actual results to differ materially from those
anticipated. Statements that are not historical fact,
including statements about Vulcan's beliefs and expectations, are
forward-looking statements. Important factors that could cause our
actual results to be materially different from our expectations
include, among others, (i) the risk that Vulcan does not receive or
satisfy regulatory or other approvals and conditions on a timely
basis or approvals are subject to conditions that are not
anticipated, (ii) modifications to the terms of the acquisition may
be required in order to obtain or satisfy such approvals or
conditions, (iii) the risk that the acquisition does not close or
that there are changes in the anticipated timing for closing the
acquisition, (iv) business disruption during the pendency of or
following the acquisition, including diversion of management time,
(v) the risk that Vulcan is unsuccessful in implementing its
strategy and business plan, (vi) the risk that Vulcan is unable to
react to and address key business and regulatory issues, and (vii)
other risks, assumptions and uncertainties detailed from time to
time in Vulcan's SEC reports, including Vulcan's latest Annual
Report on Form 10-K for the year ended December 31, 2016. Accordingly, you should
not place undue reliance on the forward-looking statements
contained in this press release. There can be no assurance that the
acquisition described above will be consummated. Forward-looking
statements speak only as of the date hereof, and Vulcan assumes no
obligation to update such statements except as required by law.
Investor Contact: Mark
Warren (205) 298-3220
Media Contact: David Donaldson
(205) 298-3220
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SOURCE Vulcan Materials Company