Image: Summit Materials
Summit Materials has confirmed it has held “initial discussions” with an interested party after receiving an acquisition proposal.
While the company has confirmed the proposal it received is non-binding, it has engaged Morgan Stanley & Co. LLC and Evercore as financial advisors, while Davis Polk & Wardwell are acting as legal advisors to Summit in the matter.
“The company has held initial discussions with the interested party, and, in consultation with its advisors, Summit’s board of directors will carefully evaluate the proposal to determine the course of action it believes is in the best interests of the company and its shareholders,” Summit said in a statement.
“There can be no assurance that any definitive agreement will be reached. Summit does not plan to provide any updates with respect to this matter except as required under applicable law.”
Summit’s statement acknowledging the offer comes after reports from Reuters and Bloomberg broke the news that Quikrete is behind the acquisition offer. Both reports suggested talks were in the “early stages” with Quikrete working with advisors on the matter.
Quikrete was founded in 1940 and has since grown to encompass a range of businesses under the Quikrete Companies brand. It describes itself as one of the largest manufacturers of “pre-blended, packaged concrete and cementitious products in North America”. Its distinctive yellow branding features on the jersey of the MLB franchise, the Atlanta Braves after they announced an agreement for five seasons in 2023.
Summit Materials was formed in 2009 and has grown into one of Northern America’s largest construction materials companies. Based in Denver, the company announced a major deal with Argos USA last year.
According to reports, the deal created the fourth-largest cement operation in the United States of America.
Anne Noonan, president and chief executive officer of Summit Materials, described the transaction as “transformative” at the time.
“Together, we now have an unrivalled, materials-dominant platform featuring significant scale and an advantaged geographic footprint,” she said.
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