Industry News, International News, News

Summit Materials, Argos USA confirm ‘transformative’ deal

Summit Materials

Summit Materials has confirmed its combination with Argos USA in a major deal that will shift the United States construction materials sector.  

The agreement, worth $3.2 billion US dollars, will create the fourth largest cement operation in the United States.  

Summit Materials president and chief executive Anne Noonan said Argos USA will undergo an integration phase into the Summit business. 

“Together, we now have an unrivalled, materials dominant, platform featuring significant scale and an advantaged geographic footprint,” she said.  

“Our talent-rich team is laser-focused on delivering our synergy commitments and industry-leading returns for our shareholders.  

“We look forward to our bright future together.” 

It comes after the Summit Materials shareholders voted in the deal with a resounding 99.4 per cent approval.  

Noonan said the “transformative transaction” had “clear endorsement” from the stakeholders to proceed after the vote.  

“They see strong strategic and financial rationale behind this transformative transaction,” she said.  

“We look forward to delivering on the strategic and financial benefits we see for all our stakeholders.”  

The deal, which was first announced in September last year, is expected to generate annual synergies of at least $100 million, with 50 per cent of that within the first two years, according to Summit Materials.  

Argos USA is one of the largest cement producers in the US. Its assets include four integrated cement plants, 140 ready-mix plants and eight ports across the southeast, mid-Atlantic and Texas. The company has a total installed cement grinding capacity of 9.6 million tons annually, with additional import capacity.  

“We are committed to strengthen and help shape the future of the combined company: we intend to be long-term shareholders,” Cementos Argos SA chairman Jorge Mario Velasquez said previously. 

“Our commitment to the success of this platform transcends the transaction itself. We believe in the growth potential and value generation that this transaction offers.  

 “We want to actively participate jointly with the Summit family by contributing our knowledge and expertise to drive that growth.” 

Send this to a friend