(Bloomberg) -- Quikrete Holdings Inc. agreed to acquire Summit Materials Inc. in a deal valued at about $11.5 billion including debt to capture a bigger share of the US building materials market.
Quikrete is paying $52.50 a share in cash for Denver-based Summit, according to a statement Monday. That’s 29% above the closing price on Oct. 23, the day before Summit said it had held initial discussions with a potential buyer.
The transaction will combine Summit’s aggregates, cement and ready-mix concrete businesses with privately held Quikrete’s concrete and cement-based products. Bloomberg News first reported last month that Quikrete had approached Summit about a potential takeover.
The deal comes little more than a year after Summit agreed to merge with the US operation of Colombian concrete maker Cementos Argos in a $3.2 billion transaction. Soon after, Bloomberg News reported that Summit had been the subject of a takeover approach from Heidelberg Materials AG.
The deal is expected to close in the first half of 2025, subject to approval from Summit shareholders and regulators. Cementos Argos, Summit’s largest investor, has agreed to back the sale.
The value of deals in the construction materials sector is up by more than 70% this year to $36 billion, data compiled by Bloomberg show, fueled by transactions including Owens Corning’s agreement to buy doormaker Masonite International Corp. for $3.9 billion.
Morgan Stanley and Evercore Inc. advised Summit, whose legal adviser is Davis Polk & Wardwell. Quikrete was advised by Wells Fargo & Co. and legal counsel Troutman Pepper Hamilton Sanders and Covington & Burling.
--With assistance from Aaron Kirchfeld.
(Updates with additional background in fourth paragraph; adds advisers in final paragraph.)
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