Quikrete Makes Billion-Dollar Bid to Acquire Summit Materials

In a significant move that underscores the ever-evolving landscape of the construction materials industry, Quikrete Holdings, Inc., a leading building materials company, has extended a definitive acquisition offer to Summit Materials, Inc. The deal, valued at approximately $11.5 billion, includes debt and represents a substantial premium to Summit Materials' current share price.

Key Points of the Acquisition:

• Valuation: The acquisition offer of $52.50 per share in cash is a 36% premium to Summit Materials' unaffected 90-day volume-weighted average price (VWAP) and a 29% premium to its unaffected share price.
• Enterprise Value: The total enterprise value of the acquisition, including debt, stands at approximately $11.5 billion.
• Regulatory Approvals: The transaction is subject to regulatory approvals and shareholder approval from Summit Materials. The completion of these steps is expected to occur in the first half of 2025.
• Post-Acquisition Structure: Upon completion, Summit Materials will become a privately held subsidiary of Quikrete. The company's common stock will cease trading on the New York Stock Exchange (NYSE) and will no longer be listed on any public market.

Background on the Companies:

• Quikrete Holdings, Inc.: A prominent player in the building materials industry, known for its diverse range of products including concrete and cement. The company has a strong track record of strategic acquisitions aimed at expanding its market presence.
• Summit Materials, Inc.: A market-leading producer of aggregates and cement with vertically integrated operations. The company supplies ready-mix concrete and asphalt across various markets in the United States and British Columbia, Canada. Summit has a history of successful acquisitions and continues to pursue high-return growth opportunities.

Legal and Financial Advisors:

The acquisition has been advised by a team of legal and financial experts. Covington & Burling LLP represented Quikrete in antitrust matters, while Morgan Stanley & Co. LLC and Evercore acted as financial advisors to Summit Materials. Davis Polk & Wardwell LLP served as the legal advisor to Summit, and Wells Fargo provided a debt financing commitment for the merger.

As the construction materials sector continues to evolve, this acquisition highlights Quikrete's strategic ambitions to consolidate its position as a major player in the industry. The deal is poised to create a significant materials-dominated platform with extensive geographic reach and scale, positioning both companies for sustained growth and market leadership.

About the Companies:

For more information about Quikrete Holdings, Inc., visit their official website. Summit Materials, Inc., now a subsidiary of Quikrete, continues to supply high-quality products and services across various end markets including public infrastructure, residential, and non-residential sectors. For details about Summit's operations and future plans, visit their website at www.summit-materials.com.