Privately held concrete-maker Quikrete is buying rival Summit Materials (SUM) in an all-cash deal valued at $11.50 billion U.S.
Quikrete said it is buying Summit Materials to capitalize on growing demand for building materials as U.S. government spending on infrastructure rises.
Quikrete has offered to pay $52.50 U.S. a share for Summit Materials, which represents a 29.2% premium to the closing price of Summit Materials stock on Oct. 23, which is when the two companies entered acquisition talks.
Founded in 1940, Atlanta, Georgia-based Quikrete is one of the largest manufacturers of concrete and cement mixes in North America.
Denver, Colorado-based Summit Materials is a provider of construction materials such as cement, ready-mix concrete and asphalt. It also provides services such as paving.
The friendly takeover of Summit Materials is expected to close in the first half of 2025, after which SUM stock will be delisted from the New York Stock Exchange on which it trades.
The stock of Summit Materials is down 2% on news that it is being acquired by Quikrete. Prior to today (Nov. 25), the company’s stock had risen 35% this year to trade at $51.66 U.S. a share.
The stock’s rise in recent months has largely been fueled by takeover rumors concerning Summit Materials.