Summit Materials Receives Stockholder Approval for Quikrete Acquisition
In a significant move within the building materials industry, Summit Materials, Inc. (NYSE: SUM), a prominent producer of aggregates and cement, has announced that it has successfully obtained all necessary stockholder approvals related to its acquisition by Quikrete Holdings, Inc. This transaction represents an important milestone for both companies as they navigate the complexities of merging operations in a competitive market.
As part of the transaction process, Summit is expected to close the deal within the first quarter of 2025, pending the satisfaction of customary closing conditions. This means that Summit will transition from being a publicly traded company to becoming a wholly owned subsidiary of Quikrete, with its shares no longer listed on the New York Stock Exchange (NYSE) following the completion of the acquisition.
The importance of this acquisition can’t be overstated, as both companies bring significant expertise to the table. Summit Materials is known for its extensive operations in aggregates and cement production, benefiting from a vertical integration that allows it to supply ready-mix concrete and asphalt in various markets throughout the United States and British Columbia, Canada. Similarly, Quikrete has established itself as a leader in the building materials sector since its inception in 1940, producing a broad range of products that include packaged cementitious materials, pavers, and a variety of other solutions that serve residential, commercial construction, and infrastructure needs.
Morgan Stanley & Co. LLC and Evercore are serving as financial advisors to Summit, while the company’s legal matters are being managed by Davis Polk & Wardwell LLP. On the other side, Wells Fargo serves as the exclusive financial advisor to Quikrete, while Troutman Pepper Locke LLP and Covington & Burling LLP provide legal counsel. The financial backing for the merger includes a debt financing commitment from Wells Fargo, showcasing the financial institutions' confidence in the future of this consolidated entity.
In the wake of the acquisition, stakeholders are keenly observing how this merger will affect market positioning and product offerings. The strategic alignment of both organizations may lead to enhanced efficiency and innovation in product development, ultimately benefiting customers and shareholders alike.
Forward-looking statements have been issued regarding the merger, indicating underlying risks and uncertainties associated with closing the transaction. Factors affecting this could include regulatory approvals and potential unforeseen challenges that could delay or derail the completion process. Furthermore, the companies have acknowledged the risk of potential litigation that may arise from stakeholders opposing the merger, emphasizing the need for clear communication and due diligence as they progress toward closure.
For consumers and industry partners, the merging of Summit Materials and Quikrete is more than just a business transaction; it represents an evolution in the construction and building materials landscape that could redefine service delivery, product quality, and operational synergies. With a proficient track record of acquisitions and a well-established presence in the market, both Summit and Quikrete appear poised to leverage their combined strengths successfully.
As the construction sector continues to recover and grow, partnerships such as this are expected to play a pivotal role in shaping the industry's future. As both parties prepare for the impending transition into this new phase, all eyes will be on them as they work towards achieving the goals set forth in their partnership.
To keep up with the developments, stakeholders and interested parties can visit Summit Materials' official website and the respective channels for updates on this significant merger and its implications for the markets they serve.
For more detailed inquiries and additional news related to the merger, contact the investor relations team at Summit Materials, or reach out to Quikrete’s marketing communications department.
This acquisition not only marks a new chapter for both companies but also signifies a trend towards consolidation in the building materials industry, indicating greater leverage and innovation opportunities for future construction projects.
As part of the transaction process, Summit is expected to close the deal within the first quarter of 2025, pending the satisfaction of customary closing conditions. This means that Summit will transition from being a publicly traded company to becoming a wholly owned subsidiary of Quikrete, with its shares no longer listed on the New York Stock Exchange (NYSE) following the completion of the acquisition.
The importance of this acquisition can’t be overstated, as both companies bring significant expertise to the table. Summit Materials is known for its extensive operations in aggregates and cement production, benefiting from a vertical integration that allows it to supply ready-mix concrete and asphalt in various markets throughout the United States and British Columbia, Canada. Similarly, Quikrete has established itself as a leader in the building materials sector since its inception in 1940, producing a broad range of products that include packaged cementitious materials, pavers, and a variety of other solutions that serve residential, commercial construction, and infrastructure needs.
Morgan Stanley & Co. LLC and Evercore are serving as financial advisors to Summit, while the company’s legal matters are being managed by Davis Polk & Wardwell LLP. On the other side, Wells Fargo serves as the exclusive financial advisor to Quikrete, while Troutman Pepper Locke LLP and Covington & Burling LLP provide legal counsel. The financial backing for the merger includes a debt financing commitment from Wells Fargo, showcasing the financial institutions' confidence in the future of this consolidated entity.
In the wake of the acquisition, stakeholders are keenly observing how this merger will affect market positioning and product offerings. The strategic alignment of both organizations may lead to enhanced efficiency and innovation in product development, ultimately benefiting customers and shareholders alike.
Forward-looking statements have been issued regarding the merger, indicating underlying risks and uncertainties associated with closing the transaction. Factors affecting this could include regulatory approvals and potential unforeseen challenges that could delay or derail the completion process. Furthermore, the companies have acknowledged the risk of potential litigation that may arise from stakeholders opposing the merger, emphasizing the need for clear communication and due diligence as they progress toward closure.
For consumers and industry partners, the merging of Summit Materials and Quikrete is more than just a business transaction; it represents an evolution in the construction and building materials landscape that could redefine service delivery, product quality, and operational synergies. With a proficient track record of acquisitions and a well-established presence in the market, both Summit and Quikrete appear poised to leverage their combined strengths successfully.
As the construction sector continues to recover and grow, partnerships such as this are expected to play a pivotal role in shaping the industry's future. As both parties prepare for the impending transition into this new phase, all eyes will be on them as they work towards achieving the goals set forth in their partnership.
To keep up with the developments, stakeholders and interested parties can visit Summit Materials' official website and the respective channels for updates on this significant merger and its implications for the markets they serve.
For more detailed inquiries and additional news related to the merger, contact the investor relations team at Summit Materials, or reach out to Quikrete’s marketing communications department.
This acquisition not only marks a new chapter for both companies but also signifies a trend towards consolidation in the building materials industry, indicating greater leverage and innovation opportunities for future construction projects.
Topics Business Technology）
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