Vulcan announces additional aggregates acquisitions
Vulcan Materials Company the nation's largest producer of construction aggregates, reported that it has completed six acquisitions during the third quarter that further expand the company's footprint and reserve positions in the best markets in America. The most recent acquisitions include five aggregates facilities and associated downstream assets in Phoenix, AZ and Albuquerque and Santa Fe, NM, as well as an aggregates operation in Delaware serving Northern Virginia and Washington, DC.
These transactions follow the previously disclosed acquisitions of four aggregates facilities in the San Francisco Bay Area and aggregates operations and distribution yards that serve the greater Dallas/Fort Worth, TX 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. 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, President and Chief Executive Officer, 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.”
Vulcan Materials Company, a member of the S&P 500 index, is the nation's foremost producer of construction aggregates and a major producer of asphalt mix and concrete.