Eagle Materials Announces Agreement to Acquire Pure-Play Aggregates Asset in Western Pennsylvania

Rhea-AI Summary

Eagle Materials (NYSE: EXP) has announced a definitive agreement to acquire Bullskin Stone & Lime, a pure-play aggregates business in Western Pennsylvania, for $152.5 million. The acquisition target serves the Pittsburgh and broader Western Pennsylvania markets, and the deal is expected to close within 60 days, subject to customary conditions.

This strategic move aligns with Eagle's long-term growth strategy by expanding its network of aggregates quarries and cement plants in the region. Eagle Materials is a leading U.S. manufacturer of heavy construction products and light building materials, operating more than 70 facilities across 21 states, with primary products including Portland Cement and Gypsum Wallboard.

Positive

• Strategic expansion into Western Pennsylvania market through $152.5M acquisition
• Complementary addition to existing network of aggregates quarries and cement plants
• Geographic expansion in key construction materials market

Negative

• Significant cash outlay of $152.5M for acquisition

Insights

Financial Analyst

The $152.5 million acquisition of Bullskin Stone & Lime represents a strategic expansion of Eagle Materials' aggregates business in the lucrative Western Pennsylvania market. This pure-play acquisition will strengthen EXP's vertical integration and market presence in a region where they already operate cement facilities. The deal's valuation appears reasonable given the current market conditions and the strategic benefits it offers. The Pittsburgh market presents solid growth opportunities due to infrastructure spending and construction activity. This acquisition should provide immediate revenue synergies through Eagle's existing distribution network and operational synergies through shared resources and improved logistics. The company's focus on expanding its aggregates business is particularly timely given the increased infrastructure spending expected from federal initiatives.

Market Research Analyst

The Western Pennsylvania market acquisition is particularly well-timed given the region's robust construction outlook and infrastructure development pipeline. Pittsburgh's metropolitan area has shown resilient demand for construction materials, supported by both public and private sector projects. This strategic move positions Eagle Materials to capture a larger share of the aggregates market in a region where transportation costs typically create natural barriers to entry. The deal's structure as a pure-play aggregates acquisition aligns with industry trends toward consolidation in the materials sector. With Eagle's existing presence in the region, this bolt-on acquisition should allow for rapid integration and market optimization, potentially leading to improved margins through operational efficiencies.

DALLAS--(BUSINESS WIRE)-- Eagle Materials Inc. (NYSE: EXP) today announced it has entered into a definitive agreement to acquire Bullskin Stone & Lime, LLC, a pure-play aggregates business located in Western Pennsylvania. The business serves the Pittsburgh and broader Western Pennsylvania markets.

The purchase price is $152.5 million, subject to customary post-closing adjustments. The transaction is expected to close in the next 60 days, subject to the satisfaction of customary closing conditions.

Commenting on the acquisition, Michael Haack, President and CEO, said, “The acquisition of Bullskin Stone & Lime further advances Eagle’s long-term growth strategy by adding a pure-play aggregates business that complements and extends our network of aggregates quarries and cement plants and terminals in the region. We look forward to welcoming Bullskin employees to the Eagle Materials organization and are excited about the opportunities this business presents for us moving forward.”

About Eagle Materials Inc.

Eagle Materials Inc. is a leading U.S. manufacturer of heavy construction products and light building materials. Eagle’s primary products, Portland Cement and Gypsum Wallboard, are essential for building, expanding and repairing roads and highways and for building and renovating residential, commercial and industrial structures across America. Eagle manufactures and sells its products through a network of more than 70 facilities spanning 21 states and is headquartered in Dallas, Texas. Visit eaglematerials.com for more information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241210376143/en/

For additional information, contact at 214-432-2000.

Michael R. Haack

President and Chief Executive Officer

D. Craig Kesler

Executive Vice President, Finance and Administration and CFO

Alex Haddock

Senior Vice President, Investor Relations, Strategy and Corporate Development

Source: Eagle Materials Inc.

FAQ

What is the purchase price for Eagle Materials' acquisition of Bullskin Stone & Lime?

Eagle Materials (EXP) is acquiring Bullskin Stone & Lime for $152.5 million, subject to customary post-closing adjustments.

When is the Bullskin Stone & Lime acquisition expected to close?

The acquisition is expected to close within 60 days from the announcement, subject to satisfaction of customary closing conditions.

What markets does Bullskin Stone & Lime serve?

Bullskin Stone & Lime serves the Pittsburgh and broader Western Pennsylvania markets.

How does this acquisition align with Eagle Materials' (EXP) strategy?

The acquisition advances Eagle Materials' long-term growth strategy by adding a pure-play aggregates business that complements and extends their network of aggregates quarries and cement plants in the region.