Aggregates Manager Digital Magazine
Issue link: https://read.dmtmag.com/i/91809
Data low progress in the return of the residential market, modest enthusiasm for the passage of MAP-21, and the continued steady, albeit modest, pace of acquisitions are starting to give some optimism that the worst is behind us and that the future, most likely beyond 2013, is looking brighter. S Recent transactions Alco Corp., a producer of asphalt roofing mate- rials headquartered in Canovanas, Puerto Rico, has sold asphalt plants to BTB Corp. and Pro- Pave Corp. BTB Corp., headquartered in Penu- elas, Puerto Rico, engages in the distribution and marketing of liquid asphalt and emulsion. Pro-Pave is headquartered in San Juan, Puerto Rico, and is a highway and paving contractor. U.S. Concrete, Inc., through its wholly owned Stock Report Company Cemex, S.A.B. de C.V. CRH plc Eagle Materials Inc. Granite Construction Inc. Heidelberg Cement AG Holcim Ltd. Ticker Current Value CX $8.97 CRG $19.03 EXP $49.54 GVA $29.48 HEI $54.06 HOLN $66.95 Martin Marietta Materials, Inc. MLM $85.09 MDU Resources Group, Inc. Texas Industries Inc. MDU $22.01 TXI $41.82 United States Lime & Minerals, Inc. USLM $49.54 U.S. Concrete Vulcan Materials Co. USCR $6.70 VMC $47.96 subsidiary, Ingram Concrete, LLC, has acquired the ready-mix operations of Colorado River Concrete, LP; Cindy & Robin Concrete, LP; and E&R Artecona FLP for $2.4 million in cash, and the assumption of approximately $1.9 million in debt. The acquisition includes four ready-mix concrete plants located in Stephenville, Aledo, Glen Rose, and Granbury, Texas. Eagle Materials Inc. has entered into a defini- tive agreement with Lafarge North America to purchase Lafarge's Sugar Creek, Mo., and Tulsa, Okla., cement plants, as well as related assets, which include six distribution terminals, two aggregates quarries, eight ready-mix concrete plants, and a fly-ash business. Eagle will also enter into a transition sales agreement to supply certain Lafarge operations with cement for four to five years and an agreement with a Lafarge 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. Steady, but modest, growth is the trend affiliate to supply low-cost alternative fuels to the acquired operations. Borrowings under Eagle's existing bank credit facility and a new equity offering will fund the $446 million purchase price. Trailing 12-month revenues through June 30, 2012, for the cement plants and related assets, were $178 million. Other news Martin Marietta Materials, Inc. is free to re- sume its fight for Vulcan Materials Co. Martin Marietta's efforts were placed on a four-month, court-imposed hold in May, which effectively lengthened the time it would take for it to take control of the Vulcan board by two years, given the time frame of when a proxy can be voted on at this point. So far, the company has kept silent. AM U.S. On-Highway Diesel Fuel Prices 52-Week 52-Week High Low $9.04 $21.82 $50.06 $30.88 $60.76 $69.53 $93.71 $23.21 $45.68 $67.40 $6.75 $49.99 Sources: New York Stock Exchange, NASDAQ, and Wall Street Journal Market Watch. Currency conversion calculated on 10/4/2012. 2.76 $15.13 $16.65 $19.05 $33.87 $47.35 $63.11 $18.75 $21.89 $39.31 $1.90 $27.24 United States East Coast New England Central Atlantic Lower Atlantic 10/1/2012 One Week One Year $4.079 $4.081 -0.007 +0.330 -0.011 +0.316 $4.195 +0.004 +0.254 $4.168 $3.995 Midwest $4.013 Gulf Coast Rocky Mountain West Coast -0.002 +0.287 -0.020 +0.296 -0.004 +0.314 $3.999 +0.004 +0.306 $4.205 $4.301 West Coast less California $4.212 California -0.023 +0.359 -0.022 +0.443 -0.037 NA $4.376 -0.010 +0.369 Source: U.S. Energy Information Administration (dollars per gallon, prices include all taxes). AGGREGATES MANAGER November 2012 19