| U.S. Concrete – not Vulcan – to acquire Polaris|
By Kevin Yanik| September 29, 2017
Polaris Materials Corp. entered into an agreement with U.S. Concrete Inc., which will now acquire the company as opposed to Vulcan Materials Co.
Prior to coming to an agreement with U.S. Concrete, Polaris terminated a previous agreement between itself and Vulcan. Polaris was valued at about $247 million based on its price per share in the U.S. Concrete arrangement, the company says.
“We are pleased to have signed an agreement with U.S. Concrete in respect of its proposal to acquire Polaris,” says Ken Palko, president and CEO of Polaris. “The offer represents increased value for our shareholders and U.S. Concrete has committed to work closely with Polaris, its First Nations partners, customers and other stakeholders to ensure a smooth transition.”
In connection with the termination of the Vulcan agreement, Polaris paid a multi-million-dollar termination fee to Vulcan. U.S. Concrete advanced funds for the payment of the termination fee.
“We believe Polaris is an ideal strategic fit and enables a replication in California of our vertically integrated business model that we successfully operate in New York” says William J. Sandbrook, U.S. Concrete president, CEO and vice chairman. “The acquisition of Polaris will provide U.S. Concrete with long-term, high-quality aggregate reserves and is expected to deliver meaningful synergies and strengthen the company’s strategic position in the highly attractive, aggregate supply-constrained Californian markets.”
Following completion of the acquisition, U.S. Concrete expects to have the capability to self-supply a majority of its ready-mixed concrete operations’ aggregate requirements in northern California, as well as to drive increased production volumes at Polaris’ Orca Quarry.
The acquisition also provides U.S. Concrete entry into Southern California through the Polaris-operated Long Beach Terminal, U.S. Concrete says.