North American construction materials company Summit Materials has been engaged in an impressive phase of expansion, enhancing its portfolio both organically and through acquisitions. Having effectively doubled its cement capacity through the recent purchase of a 1.2Msta cement plant in Davenport, Iowa, Summit Materials President and CEO, Tom Hill, speaks to ICR about the timely nature of the deal, how it fits with the company’s vertical integration model and plans for growth.
One of the fastest-growing construction materials companies in the US, Summit Materials entered the domestic cement industry in 2010 through the acquisition of Continental Cement Company which operates the Hannibal cement plant in Missouri. In July 2015 Summit roughly doubled its total cement capacity to 2.4Msta following the purchase of the 1.2Msta Davenport cement plant in Iowa plus seven distribution terminals from Lafarge North America.
With the combined business now operating under the Continental Cement umbrella, the deal strengthens the company’s position in the US Midwest.
