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Summit Materials to merge with Cementos Argos in a $3.2bn deal.

Announced

Transaction Tags

  • United States
  • Cement
  • Pending
  • Single Bidder
  • Acquisition
  • Majority
  • Public
  • Friendly
  • building materials
  • Cross Border
  • Merger

Synopsis

Summit Materials, a building materials company, agreed to merge with Cementos Argos, a Colombian construction materials producer, in a $3.2bn deal. "Combining Argos USA with Summit is a significant milestone as we execute against and accelerate our materials-led portfolio strategy. The transaction will extend our geographic reach into high growth markets, creating a leading cement enterprise nationwide, and bring together two talent-rich organizations to innovate and deliver value-added solutions for our customers. Financially, we have clear line of sight to achieving targeted synergies of more than $100m annually as we unlock the full potential of this powerful combination," Anne Noonan, Summit Materials President and CEO.

Sources

Press Release

Summit Materials

Transaction Value

£2,552m

Consideration Type

Cash

Ordinary Shares

Capital Owned

+ Add

Capital bid for

100%

EV/Sales

+ Add

EV/EBITDA

+ Add

Share Price Premium

+ Add
Service Providers (4)Dealmakers
Morgan Stanley

debt providers

Morgan Stanley

Davis Polk & Wardwell

legal advisors

Davis Polk & Wardwell

Joele Frank

pr advisors

Joele Frank

Cleary Gottlieb Steen & Hamilton

legal advisors to financial advisors

Cleary Gottlieb Steen & Hamilton

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