Polaris terminate acquisition agreement with Vulcan
Tuesday, October 3, 2017 - 07:45
Canadian-based firm pulls out of deal following ‘superior proposal’ from US Concrete
POLARIS Materials Corporation have terminated their previously announced acquisition agreement with Vulcan Materials Company having accepted a ‘superior proposal’, in accordance with the Vulcan agreement, following an unsolicited offer from US Concrete Inc.
Vancouver-based Polaris Materials have now entered into an agreement with US Concrete for the acquisition of 100% of the outstanding shares in Polaris for a cash consideration of C$3.40 per share. Under the previous agreement with Vulcan, the company’s shareholders would have received C$2.79 per share.
Commenting on the termination of the previous agreement, Vulcan’s chairman and chief executive officer, Tom Hill, said: ‘Vulcan is a disciplined buyer, and we believe that our prior agreement to acquire Polaris for C$2.79 per share represented full and fair value for the company.’
Under the terms of the agreement with Polaris, Vulcan have received a C$10 million termination fee from the Canadian firm.