Sources: Summit Materials, LLC, Washington, D.C.; CP staff
Summit Materials, the well-financed, acquisition-driven entity former Oldcastle Inc. CEO Tom Hill launched last year, has taken a majority stake in Continental Cement Co. Effected with Continental's private owners, the transaction includes a 1.25 million-ton-per-year plant and waste processing facilities in Hannibal, Mo., plus Mississippi River cement distribution terminals in Bettendorf, Iowa (150 miles north of Hannibal), and St. Louis (100 miles south). The Hannibal mill saw a near-doubling of throughput in 2008 with the addition of 540,000 tpy capacity.
Continental Cement is an excellent company with a highly experienced management team, says Hill, adding that CEO Mike Johnson and Senior Vice President Tom Beck will continue to oversee operations.
Summit cites the promising synergy of its heavy materials business in the Midwest and Continental's high-quality product output, exceptional customer service, and strategic Mississippi River location. Immediate integration opportunities downstream of cement would appear limited, based on a Summit portfolio whose concrete assets include the recently acquired ready mixed operations of Wichita, Kan.-based Cornejo & Sons and a block plant accompanying Hinkle Contracting Corp., Paris, Ky.