Quikrete Holdings and Summit Materials have signed a definitive agreement to acquire Summit Materials for $52.50 per share in an all-cash transaction valued at more than $11.5 billion. Summit Materials would become part of the Ohio-based group.
This acquisition represents an important milestone in Quikrete’s journey to expand its capabilities and geographic presence, said Will Magill, the company’s chief executive officer. Magill noted that Summit is a recognized leader with a highly complementary portfolio of reliable aggregates, cement and ready-mix concrete solutions. He also expressed his expectation to work closely with Summit’s talented team towards a shared vision for the future.
The transaction combines Summit’s core aggregates, cement and ready-mix concrete business lines with Quikrete’s core cement-based and concrete-based products business lines, resulting in a vertically integrated provider of building materials solutions in North America, recognized for its strong customer relationships and portfolio of iconic products.
Summit’s board of directors unanimously approved the terms of the offer and will recommend that shareholders vote in favor prior to the transaction’s expected closing in the first half of 2025. Following completion of the agreement, Summit will become a private subsidiary of Quikrete, and its common stock will be delisted from the New York Stock Exchange.
Summit Materials is a top 10 aggregates supplier and top 15 producer in the U.S. cement industry. The company was founded in 2009 with significant financing from private equity firm Blackstone Incorporated. The company has grown through an active acquisition strategy and offers its customers a single-source provider of building materials and complementary products in the residential, non-residential and public infrastructure end markets.
Summit Materials is a vertically integrated building materials company. The company believes that the best way to generate value for its shareholders is to combine vertical integration with an interdependent business structure, as it provides greater efficiencies and economies of scale, while enabling operating companies to make well-informed local decisions.
The QUIKRETE Group of Companies is a pioneer of the cement industry, widely recognized for its iconic and unmistakable yellow bag of concrete. Founded in 1940, the QUIKRETE Group of Companies has evolved over the past 80 years from a fledgling building materials supplier in Columbus, Ohio, to the largest manufacturer of ready-mixed and packaged concrete and cement products in North America. Today, The QUIKRETE Companies Group is a prominent company of comprehensive construction solutions and a unique and scalable source of products for the construction, repair and rehabilitation of commercial, residential and industrial buildings that proudly contributes to the growth and health of the structure and infrastructure of the United States.
The QUIKRETE Companies, true to the vision of its founder Gene Winchester, has established itself as a leader in ready-mix materials, standing out for its efficiency, quality and market reach, said its CEO, Will Magill. With a network that guarantees 24-hour deliveries and a committed team, the company has diversified its portfolio and capabilities, maintaining its legacy for 80 years.
Ultimately, the acquisition of Summit Materials by Quikrete Holdings marks a significant strategic step in the consolidation of the construction materials industry in North America. This agreement not only reinforces Quikrete’s position as a leader in the cement industry, but also opens new growth opportunities and operational synergies by integrating Summit’s capabilities into the Ohio-based group. The transaction represents a milestone that promises to redefine the competitive landscape and establish a solid foundation for the future of both companies.