Vulcan Materials to acquire Aggregates USA

Vulcan Materials Co has reached a definitive agreement with SPO Partners to acquire its aggregates business, Aggregates USA LLC for US$900m in cash. Aggregates USA LLC operates 31 facilities serving high growth markets in Georgia, Florida, Tennessee, South Carolina and Virginia.

"We are pleased to have reached agreement with SPO Partners for these strategic assets, which enhance our ability to serve high growth markets throughout the southeastern US," said Vulcan's Chairman and CEO, Tom Hill.  "With the addition of these quarries and related assets, Vulcan will be able to capitalize on continuing increases in state highway funding programs in Georgia, Florida, South Carolina, Tennessee, and Virginia, and on the continued private sector growth across the region. This transaction will provide Vulcan with long-term high quality reserves across the entire portfolio. Aggregates USA operates efficient, high-productivity facilities run by strong teams, and we welcome them to our Company."

The acquisition complements and expands Vulcan's service offerings in Georgia with three granite quarries – two of which have rail capabilities extending the company's reach into important markets – along with 16 rail distribution yards in Georgia, South Carolina and Florida.  In addition, the acquisition includes 12 limestone quarries in eastern Tennessee and southwest Virginia.  Vulcan may divest several quarries in Tennessee to a third party to expedite the regulatory approval process. The transaction is subject to customary closing conditions.