Aggregates Manager

September 2013

Aggregates Manager Digital Magazine

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Data George H. Reddin is a principal in FMI's Investment Banking practice. He can be reached at 919-785-9286 or at Construction forecast holds promise, highways remain flat E arnings reports from the construction aggregate sector show that there is improvement in the economic and construction industry fundamentals that drive demand for crushed stone, sand, and gravel. Data on housing starts and private non-residential construction continues to be positive, leading to continued increases in aggregate shipments. The demand from highway construction remains flat; however, the debate on federal funding is once again heating up in Congress. The outlook for the construction aggregates sector is as positive as it has been since the collapse of the financial sector in 2008, which should be encouraging for merger and acquisition activity in the construction materials sector. Recent transactions Lafarge North America acquired assets from the New Orleans division of Metro Materials, Inc., headquartered in St. Louis, Mo. The acquisition involves Metro Material's New Orleans assets, which include its two ready-mixed concrete plants and associated trucks and equipment. U.S. Concrete, Inc., through its wholly owned subsidiary, Redi-Mix Concrete, LLC, acquired ready-mixed concrete assets of Bodin Concrete, L.P., headquartered in Rowlett, Texas. The acquisition includes three ready-mixed concrete plants located in Wylie, Rockwall, and Forney, Texas, which will add to the company's existing operations in the Dallas/Fort Worth area. Santrol Inc. has agreed to acquire sand mining operations, resin-coating plants, and distribution terminals of FTS International, Inc. FTS International, Inc. provides oil and natural gas well stimulation services to the exploration and production companies operating in the United States. It offers Stock Report Company high-pressure hydraulic fracturing services. Santrol Inc. provides proppants for wellheads worldwide. The company was founded in 1976 and is based in Fresno, Texas. Santrol Inc. operates as a subsidiary of Fairmount Minerals Ltd. Other news American Roads LLC, based in Detroit, Mich., has filed a voluntary petition for reorganization under Chapter 11 in the U.S. Bankruptcy Court. American Roads LLC owns and operates toll road facilities in the United States and Canada. It operates toll bridges in Alabama, as well as an international border-crossing tunnel between Detroit and Windsor, Ontario. The company also develops various technologies, including toll systems, mobile payment options, customer surveying services, and traffic monitoring services. AM U.S. On-Highway Diesel Fuel Prices Ticker Current Value 52-Week 52-Week High Low 8/5/2013 One Week One Year United States $3.909 -0.006q +0.059p East Coast $3.919 -0.012q +0.050p $4.056 -0.005q +0.110p Central Atlantic $3.983 -0.010q +0.049p Lower Atlantic $3.845 -0.016q +0.039p Midwest $3.878 -0.008q +0.027p Gulf Coast $3.841 -0.004q +0.089p Rocky Mountain $3.931 +0.018p +0.118p West Coast $4.054 +0.002p +0.095p Cemex, S.A.B. de C.V. CX $12.07 p $12.57 $6.88 CRH plc CRG $22.08 p $23.97 $17.85 Eagle Materials Inc. EXP $66.75 p $80.91 $37.90 New England Granite Construction Inc. GVA $30.93 p $37.74 $25.15 Heidelberg Cement AG HEI $77.64 p $79.18 $51.09 Holcim Ltd. HOLN $74.20 p $85.43 $61.78 Martin Marietta Materials, Inc. MLM $99.34 p $113.65 $73.93 MDU Resources Group, Inc. MDU $29.37 p $30.21 $19.59 Texas Industries Inc. TXI $60.62 q $75.30 $38.14 United States Lime & Minerals, Inc. USLM $59.13 p $61.01 $41.25 U.S. Concrete $17.54 p $17.75 $5.71 Vulcan Materials Co. USCR VMC $47.71 p $59.48 $37.25 Sources: Wall Street Journal Market Watch. Currency conversion calculated on date of close 8/5/13. West Coast less California $3.961 -0.009q +0.078p California $4.133 +0.011p +0.110p Source: U.S. Energy Information Administration (dollars per gallon, prices include all taxes). AGGREGATES MANAGER September 2013 DataMining_AGRM0913.indd 5 5 8/15/13 3:03 PM

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