Sources: U.S. Concrete Inc., Houston; CP staff
U.S. Concrete has sold ready mixed and block operations in Knoxville, Tenn., and Wyoming, Del., to Oldcastle Materials Inc. The $16.5 million transaction involved properties reporting sales of $36.6 million and $34.1 million in the 12-month period ending Sept. 30, 2007. The properties in both markets represented minor platforms for U.S. Concrete, but natural bolt-ons for the buyer. Oldcastle Materials extended its eastern Pennsylvania presence nearly two years ago with the purchase of Delaware's Pioneer Concrete, and gained Tennessee operations in summer 2006 as part its APAC acquisition.
U.S. Concrete is using the proceeds to pay down its revolving credit facility and for general corporate purposes. "We will continue to evaluate the performance of our business units to ensure they provide adequate returns and fit strategic objectives," says U.S. Concrete Chief Executive Michael Harlan.