Florida Rock Closing Makes Vulcan Top-Five Ready Mixed Player
- Published: Tuesday, 13 November 2007 11:12
- Written by Concrete News
Sources: Vulcan Materials Co., Birmingham, Ala; Florida Rock Industries, Inc., Jacksonville, Fla.; CP staff
Sealing its new position as a top-five U.S. ready mixed producer, Vulcan Materials expects its $4.6 billion merger with Florida Rock to close the week of Nov. 12, nearly nine months to the date since a February takeover announcement. The smallest of three major deals this year involving a target with deep aggregate assets, it follows Cemex-Rinker (June, $15.3 billion) and Heidelberg-Hanson (August, $16 billion).
The transaction positions Vulcan with more than 140 ready mixed plants and an estimated fleet of 1,600-plus mixers. The merger brings no market overlap in ready mixed production. Vulcan operates in Arizona, California, New Mexico and Texas, while Florida Rock is among top concrete players in its home state and Virginia. According to Concrete Products' estimates, the combined companies will generate about $4.3 billion in annual sales on production of 300 million tons of aggregates; 10 million-plus yd. of ready mixed; 75 million-plus concrete blocks; and, 800,000 tons of portland and specialty cements.
Upon announcing the takeover agreement, Vulcan noted creation of a Florida Rock Division, encompassing the newly acquired materials and product operations in the Sunshine State, plus its existing Gulf Coast aggregate distribution business. Florida Rock Industries' businesses outside the home base are to be assimilated into Vulcan's existing divisions. In connection with finalizing the proposed merger at $63/share, the deadline for Florida Rock shareholders to elect whether to receive cash consideration, stock consideration or a combination of the two has been set for 5pm EST on Nov. 14.