The US aggregates future has international industry players seeing stars in 2024. Now the M&A rush is on as these movers and shakers stake out their US turf, and dig in for the long haul.
In the 2024 edition of the “Rock Products Aggregates Industry Market Report,” the Capstone Partners’ Building Products & Construction Services Team unveiled an optimistic outlook for the US aggregates sector as we move into 2024. Despite the challenges posed by elevated interest rates, the demand for US aggregates remains high, with major players like CEMEX, Vulcan Materials, and Holcim continuing to dominate the global market. Now they’re following the CEMEX lead and digging in for the long haul as they merge and consolidate the North American aggregates industry.
These companies are heavy industry’s major players and they’re not just surviving; they’re thriving. With healthy backlogs and robust revenues driven by increasing materials prices, even less is more in the US civil construction sector.
Moreover, the aggregates sector has outperformed broader markets, fueled by favorable pricing conditions and strategic mergers and acquisitions that provide ample opportunities for growth. As the US civil construction sector continues to expand, these key players are staking out their turf, signaling that the US Aggregates Rush is truly on.
CEMEX Stakes out US Presence With Atlantic Minerals 2023 Purchase
CEMEX Press release:
CEMEX expands its US aggregates sourcing capabilities with the acquisition of Atlantic Minerals
As part of its growth strategy, CEMEX, S.A.B. de C.V. (“CEMEX”) (NYSE: CX) announced today that a subsidiary has signed a definitive agreement for the purchase of the assets of Atlantic Minerals Limited in Newfoundland, Canada, consisting of a construction and chemical aggregates quarry and port operations.
With this investment, CEMEX secures a new long-term aggregates reserve for its extensive Florida operations and the U.S. East Coast, as well as a source for chemical-grade stone serving a broader geographic footprint. This acquisition is expected to increase CEMEX’s aggregate reserves for the U.S. market by approximately 20%.
“This acquisition significantly grows our aggregates business with high-quality materials and bolsters our supply chain to better serve the aggregate-constrained Florida market and grow our U.S. customer base. We will be able to further capitalize on growing infrastructure and private sector demand in Florida and elsewhere.” – CEMEX USA President, Jaime Muguiro.
The closing of this transaction is subject to the satisfaction of certain conditions, including consent from government agencies.
This acquisition aligns with the company’s strategic growth plan, through which CEMEX is optimizing its portfolio for EBITDA growth with bolt-on investments in its core businesses.
CEMEX is a global construction materials company that is building a better future through sustainable products and solutions. CEMEX is committed to achieving carbon neutrality through relentless innovation and industry-leading research and development.
CEMEX is at the forefront of the circular economy in the construction value chain and is pioneering ways to increase the use of waste and residues as alternative raw materials and fuels in its operations with the use of new technologies.
CEMEX offers cement, ready-mix concrete, aggregates, and urbanization solutions in growing markets around the world, powered by a multinational workforce focused on providing a superior customer experience, enabled by digital technologies. For more information, please visit: www.cemex.com
A Smooth Move by #1 Aggregate Producer Vulcan Materials
Vulcan Materials is recognized as the world’s largest producer in the dynamic aggregates sector. So what US ambitions does the #1 player have? May is starting out with a smooth move by Vulcan’s pavement and infrastructure preservation capabilities.
Vulcan Materials Expands with Strategic Acquisition of Whitaker Contracting Corporation
Atlanta, GA (May 7, 2024): Vulcan Materials Company, the nation’s largest producer of construction aggregates, has significantly bolstered its presence in the United States with the strategic acquisition of Whitaker Contracting Corporation. This move underscores Vulcan’s commitment to growth and reinforces its position as a leading player in the aggregates and construction materials industry.
The acquisition encompasses a comprehensive portfolio of assets, including:
- Four quarries: Expanding Vulcan’s access to high-quality aggregate reserves, crucial for construction activities.
- Three asphalt plants: Enhancing Vulcan’s production capabilities and enabling greater responsiveness to market demands.
- Whitaker’s contracting and pavement preservation business: Broadening Vulcan’s service offerings and providing turnkey solutions for infrastructure projects.
According to Vulcan Materials, “This acquisition aligns perfectly with our strategic growth objectives. Whitaker Contracting’s strong reputation, complementary assets, and experienced team will be invaluable additions to the Vulcan family.”
FMI Capital Advisors played a pivotal role in facilitating the transaction, leveraging their deep industry knowledge and expertise to ensure a successful outcome for both parties.
“We are pleased to have assisted Whitaker Contracting in finding the ideal partner in Vulcan Materials,” said Lenn Morris, Executive Vice President of Whitaker Contracting. “FMI’s guidance and understanding of the construction materials sector were instrumental throughout the process.”
Implications for the Industry:
- Increased consolidation: The acquisition further consolidates the aggregates industry, potentially leading to greater efficiency and scale.
- Enhanced competition: Vulcan’s expanded presence may intensify competition, ultimately benefiting customers through improved products and services.
- Focus on vertical integration: The inclusion of contracting and pavement preservation services indicates a trend towards vertical integration within the industry.
About Vulcan Materials Company:
Vulcan Materials Company is the nation’s largest producer of construction aggregates—primarily crushed stone, sand and gravel—and a major producer of aggregates-based construction materials, including asphalt and ready-mixed concrete. With operations in numerous states and a vast network of quarries and production facilities, Vulcan is a leading supplier of essential construction materials across the United States.
About Whitaker Contracting Corporation:
Whitaker Contracting Corporation, established in 1957, built its reputation as a reliable provider of aggregates, asphalt, and pavement maintenance services. The company’s commitment to quality and customer satisfaction has earned it a loyal customer base and a strong market position.
Time to Call Resource Erectors
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For professionals on the move up the industry career ladder, we have lucrative 6-figure positions available with our industry-leading clients all across North America. Over 85% of Resource Erectors professionals are still contributing to the success of our company clients more than 5 years later and counting. Don’t hesitate to contact us so we can all get to work in the industries that keep the world up and running.
