(Bank of America) — On February 7, 2008 Votorantim Cimentos North America announced the acquisition of Bridgeview, IL-based Prairie Material Sales, Inc. (“Prairie” or the “Company”) and certain affiliated businesses including ready-mix concrete operations and aggregates business for -$450MM.
Prairie has been wholly owned and operated by the Oremus family for over 60 years and operates 81 ready mixed concrete plants (IL, IN, MI, WI), 17 mines of aggregates (IL, IN) in addition to deposits and trucks for transporting materials (fleet of 1,150 concrete-mixer trucks).
In FY2007 the Company produced and traded 5MM m3 of concrete and 6.5MM tons of aggregates in the U.S.
The transaction excludes Illinois Brick Co., Prairie’s masonry dealer with 12 northern and central IL yards and showrooms (FY2007 sales ~$33MM).
Prairie’s operations will be merged into Votorantim’s North American subsidiary, Votorantim Cement North America (“VCNA”) and will be operated jointly with St. Marys Cement headquartered in Toronto, Canada.
Prior to the transaction Prairie was an existing customer of VCNA purchasing >60% of the cement produced at VCNA’s Dixon unit in IL. VCNA retained the Company’s management team, including Will Glusac, who was appointed President in late 200. The company will operate under Prairie Material Sales brand in IL, WI, IN, and MI.
VCNA is the North-American subsidiary of Votorantim Cimentos, an international cement manufacturer and part of the Votorantim Group of companies, one of Brazil’s largest industrial conglomerates with sales of ~$17B.
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