Summit Materials Clears Key Regulatory Hurdle for Quikrete Acquisition

Summit Materials, Inc. (NYSE: SUM), a leading producer of aggregates and cement, has announced the expiration of the Hart-Scott-Rodino (HSR) Act waiting period for its acquisition by Quikrete Holdings, Inc. This significant regulatory milestone paves the way for the completion of the transaction, which was first announced in November 2024. The acquisition, valued at approximately $11.5 billion, including debt, is expected to close in the first half of 2025, subject to shareholder approval and other customary closing conditions.

The expiration of the HSR waiting period removes a key regulatory hurdle and increases the likelihood of the acquisition's successful completion. This development is a testament to the strategic fit and potential synergies between Summit Materials and Quikrete, which aim to create a vertically integrated, North American construction materials solutions provider with strong customer relationships and iconic products.



The acquisition price of $52.50 per share represents an approximately 36% premium to Summit's unaffected 90-day volume weighted average price (VWAP) and an approximately 29% premium to Summit's unaffected share price. This compelling premium maximizes value for Summit's shareholders, who will receive significant, immediate, and certain cash value upon the transaction's completion.



The combination of Summit's leading aggregates, cement, and ready-mix concrete businesses with Quikrete's leading concrete and cement-based products business will create a powerful force in the construction materials industry. This integration will enable the combined company to leverage its complementary portfolios, enhance operational efficiency, and improve customer relationships.

Howard Lance, Chairman of Summit's Board of Directors, expressed his enthusiasm for the agreement, stating, "In reaching this decision, our Board carefully considered a range of alternatives and determined that this transaction is the best way to maximize value for our shareholders." Anne Noonan, Summit Materials President and Chief Executive Officer, echoed this sentiment, highlighting the strategic and financial performance of Summit's team in delivering a 34.6% annualized return since the launch of the Elevate strategy in September 2020.



Will Magill, Chief Executive Officer of Quikrete, shared his excitement about welcoming Summit into the Quikrete family, emphasizing the significance of this acquisition in expanding Quikrete's capabilities and geographic presence. He praised Summit as a recognized leader with a highly complementary portfolio of trusted aggregate, cement, and ready-mix solutions.

The acquisition is expected to create new and exciting opportunities for employees and customers, as the combined company will be well-positioned to capitalize on growing demand for construction materials and infrastructure development. The transaction is subject to Summit shareholder approval, regulatory approvals, and other customary closing conditions, with a target closing date in the first half of 2025.

In conclusion, the expiration of the HSR Act waiting period for the acquisition of Summit Materials by Quikrete is a significant step forward in the merger process. This development increases the likelihood of a successful completion and highlights the strategic fit and potential synergies between the two companies. Shareholders and stakeholders can look forward to the creation of a powerful, vertically integrated construction materials provider that will drive growth and innovation in the industry.