Vulcan Materials said Tuesday it completed six acquisitions during the third quarter. The most recent include five aggregates sites and associated downstream assets in Phoenix, Arizona and Albuquerque and Santa Fe, New Mexico, as well as an aggregates operation in Delaware serving Northern Virginia and Washington, DC.
These transactions follow the previously disclosed acquisitions of four aggregates sites in the San Francisco Bay Area and aggregates operations and distribution yards that serve the greater Dallas / Fort Worth market and also complement existing Vulcan rail-served markets in Texas.
Collectively, through these recent acquisitions, Vulcan has added more than 450 million tons of high quality, permitted aggregates reserves serving markets where such reserves are relatively scarce.
These transactions, totaling approximately $320 million of investment, represent the continued strategic redeployment of capital from the sale of Vulcan’s former cement and ready mix concrete business in Florida in the first quarter of 2014.
These transactions, totaling approximately $320 million of investment, represent the continued strategic redeployment of capital from the sale of Vulcan’s former cement and ready mix concrete business in Florida in the first quarter of 2014. Moreover, the structure of these transactions – along with an earlier investment in reserves at a key quarry serving San Diego – has enabled the Company to defer income taxes on approximately $145 million in capital gains.
Tom Hill, chief executive, said, “Aggregates are an essential, long-term resource of limited availability and significant value, particularly in the markets we serve. Consistent with our aggregates-focused strategy and ongoing commitment to driving profitability as an industry leader in unit profit margins, these acquisitions further enhance our future earnings potential, especially given the positive momentum we see across our markets.
“We not only expect that these assets will generate attractive returns in their own right, but also that they will create significant synergies with our existing asset base. These acquisitions complement existing aggregates sources and distribution facilities in key growth markets in Arizona, California, Texas and Northern Virginia while also providing access to new markets in New Mexico. We remain disciplined in our acquisition approach and focused on driving increased value for our shareholders as we make Vulcan, the best aggregates franchise in the world, even better.”