Summit Materials Scooped Up: Quikrete Strikes $11.5 Billion Deal To Cement Industry Presence

Summit Materials, Inc. SUM shares are trading higher on Monday. The company inked a definitive deal to be acquired by privately owned family business Quikrete Holdings for $52.50 per share in cash, valuing the transaction at approximately $11.5 billion, including debt.

The deal price represents a 36% premium to Summit’s 90-day volume-weighted average price and a 29% premium to its unaffected share price. In October, Summit Materials disclosed receiving a non-binding acquisition proposal.

The deal has been unanimously approved by both Summit and Quikrete’s Boards of Directors.

The transaction will combine Summit’s aggregates, cement, and ready-mix concrete businesses with Quikrete’s concrete and cement-based products, creating a vertically integrated North American construction materials provider with strong customer relationships and iconic products.

The transaction is expected to close in the first half of 2025, pending Summit shareholder approval, regulatory clearances, and other customary closing conditions.

Once completed, Summit will become a privately held subsidiary of Quikrete, and its common stock will no longer be traded on the NYSE.

Anne Noonan, Summit Materials President and Chief Executive Officer, said, “This combination, and the value it creates, is a testament to our stellar strategic and financial performance, agile operational and commercial execution, and to the strength and talent of our entire team who have delivered a 34.6% annualized return since we began to develop our Elevate strategy on September 1, 2020.”

Will Magill, Chief Executive Officer of Quikrete, stated, “This acquisition represents a significant milestone in our journey to expand our capabilities and geographic presence. Summit is a recognized leader with a highly complementary portfolio of trusted aggregate, cement and ready-mix solutions.”

The company’s stock has gained over 12% in the past month. Investors can gain exposure to the stock via Professionally Managed Portfolios Congress SMid Growth ETF CSMD and Invesco Dorsey Wright Basic Materials Momentum ETF PYZ.

Price Action: SUM shares are trading lower by 1.72% at $50.77 at the last check Monday.

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