Oldcastle Precast Inc. is adding significant drainage, utility and prestressed production capacity in a $21.5 million asset transaction spanning much of U.S. Concrete Precast’s California businesses: Central Precast Concrete, San Diego Precast Concrete and Sierra Precast Inc.
“We are excited to build on our strategy to provide a comprehensive line of quality precast and prestressed concrete products nationwide,” says Oldcastle Precast West Coast Group President Mike Scott. The acquisition will strengthen the company’s presence in the important western United States market, provide a leading position in northern California’s storm and sanitary sewer market, and extend solid statewide positions in the utility, transportation and structural product markets, he adds.
The U.S. Concrete properties will join Oldcastle Precast’s five drainage, utility and structural product plants in California (two northern, three southern) and two distribution centers (central, southern). Located mostly on leased land, the U.S. Concrete properties include a Precast Group headquarters plant near San Diego, opened in 2007, and the former Pomeroy Corp. precast/prestressed operation in Perris, acquired the following year.
“This divestiture is a major milestone in the strategic repositioning of our company into the premier, focused domestic supplier of ready-mix concrete,” said U.S. Concrete CEO William Sandbrook, following the early-August announcement of a definitive sales agreement with Oldcastle Precast. “The proceeds provide us the opportunity to increase cash deployed for earnings-enhancing activities such as acquisitions, organic growth opportunities and debt repayment.”
Oldcastle Precast entered California in 1981 through its acquisition of Auburn, Wash.-based Utility Vault Co., with two Golden State plants. As part of its May 1999 ramp up and initial public offering, U.S. Concrete chartered with northern California precasters Santa Rosa Cast Products and Western Concrete Products, adding San Diego Precast later that year. The transaction with Oldcastle Precast leaves the U.S. Concrete Precast Group with a utility and nonarchitectural product plant in Phoenix, plus an architectural and structural operation in Middleburg, Pa. In its core ready mixed business, U.S. Concrete maintains strong presence in northern California, central and west Texas, and metro New York/New Jersey.