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U.S. Concrete Skyrockets on Deal to Be Bought for $1.29B by Vulcan

U.S. Concrete soars after agreeing to be acquired by Vulcan Materials.

U.S. Concrete  (USCR) - Get U S Concrete Inc. Report was soaring Monday after the company agreed to be acquired by Vulcan Materials  (VMC) - Get Vulcan Materials Company (Holding Company) Report in a deal valued at $1.29 billion.

Shares of the Euless, Texas, company were climbing nearly 28% to $73.10 in premarket trading, while Vulcan Materials, which is based in Birmingham, Ala., fell nearly 1% to $178.28.

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U.S. Concrete had been up 43% to date. Vulcan Materials had risen 21%.

Under the terms of the agreement, Vulcan will acquire all of the issued and outstanding common shares of U.S. Concrete for $74 a share in cash for a total equity value of $1.294 billion. 

Both boards have approved the transaction, which is expected to close in the second half of the year.

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The acquisition is expected to increase Vulcan's EBITDA by about $190 million before synergies and be accretive to Vulcan's earnings per share in the first full year following closing.

"U.S. Concrete is an important Vulcan customer in a number of key areas, and this transaction is a logical and exciting step in our growth strategy as we further bolster our geographic footprint," Tom Hill, chairman and CEO of Vulcan Materials, said in a statement.

U.S. Concrete, which has about 3,000 employees, sells ready-mixed concrete, aggregates, and concrete-related products. Vulcan, which has about 9,000 employees, was recommended by TheStreet founder Jim Cramer during the "Lightning Round" portion of Mad "Money" earlier this year.

"With 27 aggregates operations serving California, Texas and the Northeast, that shipped 12.6 million tons in 2020," Vulcan said, "the acquisition of U.S. Concrete's portfolio represents a natural addition to Vulcan's business."

The Greystone Group is the financial adviser to Vulcan, while Truist Securities is serving as sole lead arranger on committed financing to Vulcan. 

Last month, building materials supplier Martin Marietta Materials  (MLM) - Get Martin Marietta Materials Inc. Report agreed to buy HeidelbergCement's Lehigh Hanson's business in California and Arizona for $2.3 billion in cash.