VULCAN TO ACQUIRE LEADING BUILDING MATERIALS COMPANY IN SOUTHERN CALIFORNIA

Rhea-AI Summary

Vulcan Materials Company (NYSE: VMC) has announced a definitive agreement to acquire Superior Ready Mix Concrete, expanding its presence in Southern California. The acquisition includes six aggregates operations with over 50 years of quality reserves, two asphalt plants, and thirteen ready-mixed concrete locations. This strategic move strengthens Vulcan's position in California, which is the most populous state and second-largest aggregates market in the U.S.

The transaction, expected to close by the end of 2024, aligns with Vulcan's aggregates-led growth strategy to expand its reach in attractive U.S. regions. Superior, established in 1958, brings a strong track record of high-quality products and services that complement Vulcan's existing operations.

Positive

• Acquisition adds 6 aggregates operations with 50+ years of reserves
• Expands presence in California, the second-largest aggregates market
• Adds 2 asphalt plants and 13 ready-mixed concrete locations
• Strengthens market position in high-growth Southern California region
• Enhances customer service capabilities

Negative

• None.

Insights

Financial Analyst

This strategic acquisition significantly strengthens Vulcan's position in California's lucrative construction materials market. Superior's six aggregates operations with 50+ years of reserves represent substantial long-term value, particularly in Southern California's high-demand market. The addition of 13 ready-mix concrete locations and two asphalt plants creates vertical integration opportunities and expanded market reach. The timing is opportune given California's infrastructure spending plans and population growth dynamics. This move aligns with industry consolidation trends and should enhance Vulcan's market share in the nation's second-largest aggregates market. The deal's expected closure by year-end suggests minimal regulatory hurdles and quick integration potential.

Market Research Analyst

The California construction materials market presents significant growth potential, driven by the state's massive infrastructure needs, housing demands and sustained population growth. Superior's established presence and extensive reserves in Southern California provide Vulcan with enhanced market penetration in a region known for high barriers to entry, particularly in obtaining new quarry permits. The vertical integration through ready-mix and asphalt operations should improve operational efficiency and margin potential. This acquisition strengthens Vulcan's competitive position against other major players in the region and provides additional leverage in pricing and customer relationships.

BIRMINGHAM, Ala., Dec. 11, 2024 /PRNewswire/ -- Vulcan Materials Company (NYSE: VMC), the nation's largest producer of construction aggregates, today announced that it has entered into a definitive agreement to acquire Superior Ready Mix Concrete, L.P. ("Superior"). This value-enhancing acquisition will add six aggregates operations with more than 50 years of quality aggregates reserves to Vulcan's California franchise. California ranks as the most populous state in the U.S. and the second largest aggregates market. Superior will also enhance Vulcan's customer service capabilities in Southern California with two asphalt plants and thirteen ready-mixed concrete locations.

Tom Hill, Vulcan's Chairman and Chief Executive Officer, said, "Since its beginnings in 1958, Superior has had an unwavering commitment to excellence and a long and successful track record of providing high quality products and services to its customers. Our continuous improvement culture is about making the best even better, and we look forward to working with the Superior team to do just that."

Mr. Hill went on to say, "This acquisition is consistent with our aggregates-led growth strategy of continuing to expand our reach to better serve attractive regions in the United States. Our Vulcan Way of Selling and Vulcan Way of Operating disciplines remain fundamental to consistently compounding profitability across our franchise and successfully integrating new operations. We are excited about the breadth of strategic opportunities created by adding Superior to Vulcan's portfolio. With the financial strength and flexibility to continue to grow, we are well-positioned to continue to deliver value for our shareholders and our customers."

The transaction is expected to close by the end of this year, subject to customary closing conditions.

About Vulcan Materials Company
Vulcan Materials Company, a member of the S&P 500 Index with headquarters in Birmingham, Alabama, is the nation's largest supplier of construction aggregates – primarily crushed stone, sand and gravel – and a major producer of aggregates-based construction materials, including asphalt and ready-mixed concrete. For additional information about Vulcan, go to www.vulcanmaterials.com.

FORWARD-LOOKING STATEMENT DISCLAIMER
This communication contains "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995 and other securities laws, regarding Vulcan, including, but not limited to, statements about the benefits of the proposed transaction between Vulcan and Superior Ready Mix Concrete, L.P. ("Superior"), including Vulcan's plans, objectives, expectations and intentions and the expected timing of completion of the proposed transaction. You can generally identify forward-looking statements by the use of forward-looking terminology such as "anticipate," "believe," "continue," "could," "estimate," "expect," "explore," "evaluate," "intend," "may," "might," "plan," "potential," "predict," "project," "seek," "should," or "will," or the negative thereof or other variations thereon or comparable terminology. These forward-looking statements are based on Vulcan's current plans, objectives, estimates, expectations and intentions and inherently involve significant risks and uncertainties, many of which are beyond Vulcan's control. Actual results and the timing of events could differ materially from those anticipated in such forward-looking statements as a result of these risks and uncertainties, which include, without limitation, risks and uncertainties associated with: Vulcan's ability to complete the transaction on the proposed terms or on the anticipated timeline, or at all, including risks and uncertainties related to the satisfaction of closing conditions to consummate the proposed transaction; the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive purchase agreement relating to the proposed transaction; failure to realize the expected benefits of the proposed transaction; significant transaction costs and/or unknown or inestimable liabilities; the risk that Superior's business will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; risks related to future opportunities and plans for the combined company; disruption from the proposed transaction, making it more difficult to conduct business as usual or maintain relationships with customers, employees or suppliers; effects relating to the announcement of the proposed transaction on the market price of Vulcan's common stock; the possibility that, if Vulcan does not achieve the perceived benefits of the proposed transaction as rapidly or to the extent anticipated by financial analysts or investors, the market price of Vulcan's common stock could decline; regulatory initiatives and changes in tax laws; general economic conditions; and other risks and uncertainties, including those described from time to time under the caption "Risk Factors" in reports and filings made by Vulcan with the Securities and Exchange Commission, including Vulcan's Annual Report on Form 10-K for the year ended December 31, 2023, Vulcan's Quarterly Reports on Form 10-Q for the quarter ended March 31, 2024, the quarter ended June 30, 2024 and the quarter ended September 30, 2024, and future filings and reports made by Vulcan. Moreover, other risks and uncertainties of which Vulcan is not currently aware may also affect Vulcan's forward-looking statements and may cause actual results and the timing of events to differ materially from those anticipated. Vulcan cautions investors that such forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such forward-looking statements. The forward-looking statements made in this communication are made only as of the date hereof or as of the dates indicated in the forward-looking statements and reflect the views stated therein with respect to future events as at such dates, even if they are subsequently made available by Vulcan on its website or otherwise. Vulcan does not undertake any obligation to update or supplement any forward-looking statements to reflect actual results, new information, future events, changes in its expectations or other circumstances that exist after the date as of which the forward-looking statements were made, except as required by law.

Investor Contact: Mark Warren (205) 298-3220
Media Contact: Jack Bonnikson (205) 298-3220

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SOURCE Vulcan Materials Company

FAQ

What assets is VMC acquiring from Superior Ready Mix Concrete?

VMC is acquiring 6 aggregates operations with 50+ years of reserves, 2 asphalt plants, and 13 ready-mixed concrete locations in Southern California.

When is the VMC-Superior Ready Mix acquisition expected to close?

The acquisition is expected to close by the end of 2024, subject to customary closing conditions.

How does the Superior acquisition align with VMC's growth strategy?

The acquisition aligns with VMC's aggregates-led growth strategy by expanding its reach in attractive U.S. regions and strengthening its presence in California, the second-largest aggregates market.

What is the strategic importance of VMC's expansion in California?

California is strategically important as it's the most populous state and second-largest aggregates market in the U.S., offering significant growth opportunities for VMC.

How will the Superior acquisition enhance VMC's operations?

The acquisition will enhance VMC's customer service capabilities in Southern California and add significant aggregates reserves, asphalt plants, and ready-mixed concrete locations to its portfolio.