Aggregates Manager Digital Magazine
Issue link: https://read.dmtmag.com/i/107584
Data George H. Reddin is a principal in FMI's Investment Banking practice. He can be reached at 919-785-9286 or at greddin@fminet.com. 2012 Closes with a Burst of M&A Activity A s expected, 2012 ended with a flurry of merger and acquisition activity. The outlook for deal activity in 2013 is good; however, there remains some concern and uncertainty about how Congress and the White House will deal with the spending side of the fiscal cliff debate. Recent transactions In December, Oldcastle Materials, Inc. acquired a majority stake in Trap Rock Industries, Inc. Trap Rock Industries, Inc. engages in the production of hot-mix asphalt and crushed stone for contractors and government agencies. The company was founded in 1966 and is based in Kingston, N.J. Oldcastle Materials, Inc. also acquired selected assets in Pennsylvania and Maryland from Haines & Kibblehouse, Inc. in December 2012. The assets included a quarry, a sand and gravel operation, and two asphalt plants. Haines & Kibblehouse, Inc., based in Skippack, Pa., provides contracting and demolition services, construction materials, landscape materials, recycling and clean fill, and emergency response services in eastern Pennsylvania, New Jersey, Maryland, and Delaware. In addition, Oldcastle Materials, Inc. acquired Concrete Materials, Inc. in December 2012. Concrete Materials, Inc., based in Morristown, Tenn., manufactures ready-mix concrete products. And finally, Oldcastle Materials, Inc. acquired aggregates reserves and mobile equipment from Sidwell Materials, Inc. in December 2012. Sidwell Materials, Inc., based in Zanesville, Ohio, provides limestone, sand and gravel, and Stock Report Company ready-mix concrete for residential and commercial construction projects in Ohio. Jensen Enterprises, Inc., based in Sparks, Nev., acquired assets of Smith Precast, Inc. from U.S. Concrete, Inc. for $4.4 million in December 2012. Smith Precast, Inc., based in Phoenix, Ariz., produces sewer manholes, septic and water tanks, dry well liners, and ready-mix concrete. The proceeds from the sale will be used by U.S. Concrete to repay debt and create liquidity for acquisitions and other growth opportunities. Granite Construction Inc., based in Watsonville, Calif., acquired Kenny Construction Co. based in Northbrook, Ill. Kenny is a national contractor and construction manager specializing in the power, tunnel, water, and civil markets. The price was $130 million. AM U.S. On-Highway Diesel Fuel Prices Ticker Current Value 52-Week 52-Week High Low 01/07/2013 One Week One Year United States $3.911 -0.007q +0.083p $16.22 East Coast $4.006 0.000 +0.098p $27.37 New England $4.153 -0.001q +0.124p $34.96 $21.38 Central Atlantic $4.107 +0.002p +0.111p $61.96p $60.36 $42.68 HOLN $74.97p $75.13 $53.00 Lower Atlantic $3.902 -0.002q +0.082p Martin Marietta Materials, Inc. MLM $97.64p $100.03 $63.64 Midwest $3.870 -0.015q +0.153p MDU Resources Group, Inc. MDU $21.77p $23.21 $19.59 Gulf Coast $3.837 +0.007p +0.087p Texas Industries Inc. TXI $55.60p $56.10 $27.99 Rocky Mountain $3.688 -0.058q -0.155q $47.98p $67.40 $41.25 West Coast $3.988 -0.003q -0.038q West Coast less California $3.918 -0.010q -0.009q California $4.048 +0.003p -0.063q Cemex, S.A.B. de C.V. CX $10.35p $10.56 $4.94 CRH plc CRG $20.33p $22.31 Eagle Materials Inc. EXP $63.28p $63.02 Granite Construction Inc. GVA $34.43p Heidelberg Cement AG HEI Holcim Ltd. United States Lime & Minerals, Inc. USLM U.S. Concrete USCR $9.82p $10.81 $3.05 Vulcan Materials Co. VMC $53.85p $54.30 $32.31 Sources: New York Stock Exchange, NASDAQ, and Wall Street Journal Market Watch. Currency conversion calculated on 1/4/13. Source: U.S. Energy Information Administration (dollars per gallon, prices include all taxes). AGGREGATES MANAGER February 2013 31