Vulcan expands through acquisitions, USA

Vulcan Materials Company, the biggest construction aggregates producer in the US, completed six acquisitions during its third quarter to expand its aggregate operations.

These consist of five aggregates facilities and concerning downstream assets in Albuquerque, Phoenix, and Santa Fe, and an aggregates operation in Delaware that serves the markets in Northern Virginia and Washington, DC. The purchases follow the acquisition of four aggregates facilities in the San Francisco Bay area and of aggregates distribution and operations yards that serve the Greater Dallas/Fort Worth markets. Together, the deals increased Vulcan s permitted aggregates reserves by more than 450Mt. Investment in these acquisitions formed a part of the company s strategic redeployment of capital from the sale of its cement and ready-mix concrete operations in Florida earlier in 2014.

Tom Hill, President and Chief Executive Officer said: "Consistent with our aggregates-focused strategy and ongoing commitment to driving profitability as an industry leader in unit profit margins, these acquisitions further enhance our future earnings potential, especially given the positive momentum we see across our markets. We not only expect that these assets will generate attractive returns in their own right, but also that they will create significant synergies with our existing asset base. These acquisitions complement existing aggregates sources and distribution facilities in key growth markets in Arizona, California, Texas."