Michigan Exit, Texas Additions Continue U.S. Concrete Realignment
- Written by Concrete News
Sources: U.S. Concrete Inc., Houston; CP staff
Following a financial reorganization completed just before Labor Day, U.S. Concrete is focusing ready-mixed production assets around Texas, California Bay Area, and metro-New York/New Jersey markets. The company has closed on three ready-mixed plants in west Texas, adding them to its strong Ingram Concrete platform, and withdrawn from its Michigan joint venture, Superior Materials Holdings, LLC, with Edw. C. Levy Co. The latter move requires cash contributions in return for a release of certain obligations and indemnification related to contingent underfunded pension liabilities.
Exiting the depressed Michigan market, notes U.S. Concrete CEO Michael Harlan, removes a material uncertainty concerning our future financial condition and will result in an immediate improvement in our operating cash flow. The addition of west Texas assets, he adds, furthers our emphasis on those markets where we are vertically integrated in aggregates [and] strengthens our competitive position in a profitable market area.