November 29, 2024 | Industrials | North America | Active

Summit Materials / Quikrete: Deal Insight


On 25-Nov-24, Summit Materials, a leading provider of construction materials, announced a definitive agreement to be acquired by privately-held rival Quikrete Holdings in a transaction valuing Summit at $11.5bn. Under the terms of the agreement, Quikrete will pay $52.50 per share, representing a 29% premium to Summit’s unaffected share price on 23-Oct-24. The boards of directors for both companies unanimously approved the merger. The transaction requires approval from Summit shareholders (50%), and Cementos Argos (CEMARGOS CB), a Colombian cement and concrete producer with ties to Summit and its largest shareholder (30.6%), has committed to vote in favour of the acquisition. The deal is conditional on receiving regulatory approvals, including antitrust clearances in the US and Canada. HSR is to be filed by 9-Dec-24, and undisclosed governmental consents are also required. Both companies have pledged to use their reasonable best efforts to satisfy all conditions and expedite the transaction. Summit has agreed to customary non-solicitation provisions, including fiduciary-out exemptions. Financing will come from a combination of Quikrete’s existing cash and new debt, and


Contents

  • Merger Agreement
  • Deal Rationale
  • Antitrust Considerations and the Competitive Landscape
  • Precedent Transactions to Consider Scrutiny and Timing
  • Cementos Argos Ties and the Shareholder Vote
  • Trading Recommendation





How to Access this Report

Please contact us to request access to this report.


CONTACT US


Share this article



← RETURN TO RESEARCH

Back to top of page