Quikrete to acquire Summit (SUM.US) for $11.5B to become one of the largest construction material producers in North America

Summit Materials(SUM.US) confirmed it has agreed to be acquired by privately held Quikrete Holdings for $52.50 per share in cash, valuing the company including debt at approximately $11.5 billion. The transaction, which is expected to result in the full consolidation of Summit and Quikrete's cement and concrete businesses, will create one of the largest construction materials producers in North America, according to sources. Summit Materials fell about 1.65% before the opening of U.S. markets on Monday, closing at $51.66 on Friday, valuing the company at about $9.1 billion.

Quikrete's formal offer was about 1.6% higher than Summit's closing price on Friday, according to sources. Summit's shares have risen about 27% since media reports on Oct. 24 that Quikrete was considering an acquisition of Summit.

Summit said its largest shareholder Cementos Argos has agreed to vote in favor of the acquisition.

Quikrete, founded in 1940 and headquartered in Atlanta, Georgia, is one of the largest manufacturers of packaged concrete and cement mix in North America.

Summit Materials, founded in 2009 and headquartered in Denver, Colorado, supplies cement, pre-mixed concrete and asphalt and provides construction and systematic paving services. Market analysts generally pointed out that the acquisition would integrate the two companies' flagship cement and concrete businesses, creating one of the largest construction materials producers in North America.