Argos North America and Summit Materials Combine to Create a Stronger Force in the U.S. Construction Materials Industry
07 Septembre 2023 - 1:28PM
Business Wire
Combined operations will represent one of the
largest suppliers of cement and ready-mix in the U.S.
Cementos Argos today announced it has entered into a definitive
agreement with Summit Materials, Inc. (NYSE:SUM) under which the
U.S. operations of Cementos Argos, Argos North America Corp, will
combine with Summit in a cash and stock transaction valued at $3.2
billion.
“This combination accelerates the strategic growth plans for
both Argos North America and Summit,” said Simon Bates, CEO of
Argos North America. “As a result of the combination, our ability
to share best practices and the increased access to aggregate
sources will enable us to better serve our customers.”
Key Highlights of the Transaction:
- Substantial Equity Stake in NYSE Listed Company:
Cementos Argos will achieve a strategic objective of acquiring a
substantial equity stake in a New York Stock Exchange listed
company through its 31% ownership stake in Summit, while becoming a
more vertically integrated construction materials provider in the
U.S., offering new opportunities for growth and visibility.
- Expanded Footprint: The transaction is expected to
result in an expanded and more robust geographic presence,
positioning the combined organization to better serve diverse
markets and customers across the U.S. The combined organization
will have a significant presence in major urban markets spanning 30
U.S. states. It will benefit from vertical integration in cement
production, aggregates and ready-mix, as well as a strategic
network of ports and terminals to complement local capacity.
- Efficiencies: This combination unlocks estimated annual
synergies of approximately $100 million per year, derived from
optimized sourcing, enhanced operational efficiency, increased
utilization of the import terminals' network, and an augmented
asset base to increase the use of alternative fuels.
“This agreement enables Cementos Argos to fulfill its strategic
goal of generating greater economic value for shareholders,” said
Juan Esteban Calle, Cementos Argos CEO. “It aligns with the
company's objective of holding a substantial stake in a NYSE-listed
company and leverages a platform with a proven track record of
growth, enabling substantial potential for future expansion and
profitability. Argos will continue to contribute its business
knowledge and leadership in sustainability initiatives as part of
the combined organization’s Board of Directors while further
solidifying its growth and value proposition in the other countries
in the Americas where it has a presence.”
The transaction is subject to antitrust regulatory approval,
approval of Summit’s shareholders, and other customary closing
conditions. Both Summit and Argos North America will continue to
operate independently until the necessary legal and regulatory
approvals are met.
About Summit Materials:
Summit Materials is a leading vertically integrated
materials-based company that supplies aggregates, cement, ready-mix
concrete and asphalt in the United States and British Columbia,
Canada. Summit is a geographically diverse, materials-based
business of scale that offers customers a single-source provider of
construction materials and related downstream products in the
public infrastructure, residential and nonresidential end markets.
Summit has a strong track record of successful acquisitions since
its founding and continues to pursue growth opportunities in new
and existing markets. For more information about Summit Materials,
please visit www.summit-materials.com.
About Argos North America:
Argos North America, headquartered in Alpharetta, Ga., has had a
presence in the U.S. since 2005. The company has more than 2,300
employees and Argos has invested more than $3 billion in the U.S.
since beginning operations here. Through a combination of expertise
and dedication, Argos North America has participated in some of the
most significant and well-recognized projects in its areas of
operations. The company's value chain includes a network of four
cement plants, two grinding mills, eight ports, 10 inland
terminals, approximately 140 ready-mix plants, and a diverse
portfolio of cement and concrete based products. Argos North
America has a strong commitment to sustainability, which combines
its core identity of research and development with proprietary
technology, aiming to find better solutions to tomorrow’s
challenges. The company is incredibly proud of its safety advocacy,
environmental stewardship, and continued efforts to build a
brighter future for people and places. For more information, please
visit https://argos-us.com.
About Cementos Argos:
Cementos Argos is a growing multinational company, producer and
distributor of cement, concrete and aggregates. With nearly 90
years of history, it has a presence in 16 countries and
territories. Thanks to its installed capacity, value creation for
its stakeholders, constant innovation and commitment to
sustainability, Argos is a leader in Colombia and has become a
significant player in the industry in the Americas. It has nearly
7,000 employees, 11 integrated cement plants, 197 concrete plants,
7 aggregate plants, 9 clinker grinding mills, 29 ports and
terminals, almost 1,700 mixer trucks, over 1,500 train wagons and
four vessels of its own. Its total installed capacity is 24 million
tons of cement, and in 2022, it exported to 25 destinations. For
more information, please visit www.argos.co.
Forward-Looking Statements:
This press release contains forward-looking statements that
involve risks and uncertainties. Actual results may differ
materially from those projected in the forward-looking statements.
More information about the potential factors that could affect the
business and financial results is included in the companies'
filings with the Securities and Exchange Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20230907331456/en/
Beth Geiger argos-communications@argos-us.com 470-368-0137
Summit Materials (NYSE:SUM)
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