Argos North America and Summit Materials Combine to Create a Stronger Force in the U.S. Construction Materials Industry
- Combination accelerates strategic growth plans for both companies
- Expanded footprint in major urban markets across 30 U.S. states
- None.
Combined operations will represent one of the largest suppliers of cement and ready-mix in the
“This combination accelerates the strategic growth plans for both Argos North America and Summit,” said Simon Bates, CEO of Argos North America. “As a result of the combination, our ability to share best practices and the increased access to aggregate sources will enable us to better serve our customers.”
Key Highlights of the Transaction:
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Substantial Equity Stake in NYSE Listed Company: Cementos Argos will achieve a strategic objective of acquiring a substantial equity stake in a New York Stock Exchange listed company through its
31% ownership stake in Summit, while becoming a more vertically integrated construction materials provider in theU.S. , offering new opportunities for growth and visibility. -
Expanded Footprint: The transaction is expected to result in an expanded and more robust geographic presence, positioning the combined organization to better serve diverse markets and customers across the
U.S. The combined organization will have a significant presence in major urban markets spanning 30 U.S. states. It will benefit from vertical integration in cement production, aggregates and ready-mix, as well as a strategic network of ports and terminals to complement local capacity. -
Efficiencies: This combination unlocks estimated annual synergies of approximately
per year, derived from optimized sourcing, enhanced operational efficiency, increased utilization of the import terminals' network, and an augmented asset base to increase the use of alternative fuels.$100 million
“This agreement enables Cementos Argos to fulfill its strategic goal of generating greater economic value for shareholders,” said Juan Esteban Calle, Cementos Argos CEO. “It aligns with the company's objective of holding a substantial stake in a NYSE-listed company and leverages a platform with a proven track record of growth, enabling substantial potential for future expansion and profitability. Argos will continue to contribute its business knowledge and leadership in sustainability initiatives as part of the combined organization’s Board of Directors while further solidifying its growth and value proposition in the other countries in the
The transaction is subject to antitrust regulatory approval, approval of Summit’s shareholders, and other customary closing conditions. Both Summit and Argos North America will continue to operate independently until the necessary legal and regulatory approvals are met.
About Summit Materials:
Summit Materials is a leading vertically integrated materials-based company that supplies aggregates, cement, ready-mix concrete and asphalt in
About Argos North America:
Argos North America, headquartered in
About Cementos Argos:
Cementos Argos is a growing multinational company, producer and distributor of cement, concrete and aggregates. With nearly 90 years of history, it has a presence in 16 countries and territories. Thanks to its installed capacity, value creation for its stakeholders, constant innovation and commitment to sustainability, Argos is a leader in
Forward-Looking Statements:
This press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those projected in the forward-looking statements. More information about the potential factors that could affect the business and financial results is included in the companies' filings with the Securities and Exchange Commission.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230907331456/en/
Beth Geiger
argos-communications@argos-us.com
470-368-0137
Source: Argos North America