U.S. Concrete Inc. has entered into an arrangement agreement with Polaris Materials Corp. in which U.S. Concrete will acquire all the issued and outstanding common shares of Polaris for C$3.40 per share. The price per share implies an aggregate fully diluted equity value for Polaris of about C$309 million.
Additionally, Polaris has terminated the previously announced arrangement agreement between Polaris, Vulcan Materials Co. and a wholly-owned subsidiary of Vulcan dated Aug 25.
“We believe that Polaris is an ideal strategic fit and enables a replication in California of our vertically integrated business model that we successfully operate in New York” said U.S. Concrete’s President, CEO and Vice Chairman William Sandbrook. “The acquisition of Polaris will provide U.S. Concrete with long-term, high quality aggregate reserves and is expected to deliver meaningful synergies and strengthen the Company’s strategic position in the highly attractive, aggregate supply-constrained Californian markets.
“Following completion of the acquisition, U.S. Concrete expects to have the capability to self-supply a large majority of its market leading ready-mixed concrete operations’ aggregate requirements in Northern California and to drive increased production volumes at Polaris’ Orca Quarry. The acquisition also provides us an entrance into Southern California through the Polaris-operated Long Beach Terminal.”
For further information, read:
The U.S. Concrete press release here.
The Polaris Materials press release here.
The Vulcan Materials press release here.