U.S. Concrete Completes Purchase Of Orca Quarry Leased Land And Royalty Agreement

Rhea-AI Summary

U.S. Concrete, Inc. (NASDAQ: USCR) announced the acquisition of the Orca Quarry in British Columbia, Canada, purchasing 1,551 acres of previously leased land and associated royalty agreements. This strategic move aims to enhance aggregates profitability by eliminating the royalty burden, which is expected to improve margins and cash flow. CEO Ronnie Pruitt highlighted the acquisition as providing an attractive multiple and aligning with the company's focus on growth in aggregates. The company continues to pursue organic growth and acquisitions to strengthen its market position.

Positive

• Acquisition of Orca Quarry expected to improve aggregates margins.
• Elimination of royalty agreement enhances cash generation.
• Strategic alignment with company's growth direction since the Polaris acquisition in 2017.

Negative

• None.

EULESS, Texas, March 17, 2021 /PRNewswire/ -- U.S. Concrete, Inc. (NASDAQ: USCR), a leading supplier of aggregates and ready-mixed concrete in active construction markets across the country, announced today that it has purchased fee simple property and the underlying royalty agreement associated with the Orca Quarry ("Orca") on Vancouver Island, British Columbia, Canada. The acquisition includes approximately 1,551 acres in four parcels of previously leased land.

"Since the Polaris Materials acquisition in 2017, our strategic direction has been to grow our aggregates profitability and this acquisition eliminates the royalty agreement which immediately improves our aggregates margin and cash generation," said Ronnie Pruitt, U.S. Concrete President and Chief Executive Officer.  "We take pride in being a disciplined buyer and this purchase provides an extremely attractive multiple. I am confident that Polaris, like all of our aggregates segment expansions, will continue to provide near- and long-term value to our shareholders. Since acquiring Polaris, our efforts in increasing the throughput at our Long Beach terminal, permitting of a new terminal in the Port of Oakland, and expanding through the Black Bear project will support the growth of our supply of high-quality, highly specified material to the aggregates constrained Southern and Northern California markets."  

About U.S. Concrete
U.S. Concrete, Inc. (NASDAQ: USCR) is a leading supplier of aggregates and concrete for infrastructure, residential and commercial projects across the country. The Company holds leading market positions in the high-growth metropolitan markets of Dallas/Fort Worth, San Francisco, New York City, Philadelphia, and Washington, D.C., and its materials have been used in some of the most complex and highly specialized construction projects of the last decade. U.S. Concrete has continued to grow organically and through a series of strategic acquisitions of independent producers in its target markets.

For more information on U.S. Concrete, visit www.us-concrete.com.

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Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. All written and oral forward-looking statements made in connection with this press release that are attributable to us or persons acting on our behalf are expressly qualified in their entirety by the "Risk Factors" in our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.  We are under no duty to update any of the forward-looking statements after the date of this press release to conform such statements to actual results or to changes in our expectations, except as required by federal securities laws.  There can be no assurance that other factors will not affect the accuracy of these forward-looking statements or that our actual results will not differ materially from the results anticipated in such forward-looking statements. Unpredictable or unknown factors we have not discussed in this press release also could have material effects on actual results or matters that are the subject of our forward-looking statements. We undertake no obligation to, and do not intend to, update our description of important factors each time a potential important factor arises.

Source: USCR-G

Company Contact Information:
U.S. Concrete, Inc. Investor Relations
844-828-4774
IR@us-concrete.com

Media Contact:
Media@us-concrete.com    

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SOURCE U.S. Concrete, Inc.