Vulcan to acquire Polaris Materials Corp.
US giant reaches definitive agreement to acquire strategically situated aggregates and logistics business
VULCAN Materials Co., the largest producers of construction aggregates in the US, have reached a definitive agreement to acquire Polaris Materials Corp., an aggregates and logistics business that serves key California markets from strategically situated operations in British Columbia, for C$252 million.
The Polaris business includes a high-capacity aggregate processing plant and deep-water port on Vancouver Island, along with associated long-term aggregate reserves and five distribution yard outlets in the San Francisco Bay area and in Long Beach, California.
‘We are very pleased to have reached agreement to acquire Polaris Materials, which is expected to further enhance our ability to serve major California markets,’ said Vulcan’s chairman and chief executive officer, Tom Hill.
‘With this acquisition, we are continuing to build on our industry-leading position in the state of California. Polaris have assembled high-quality aggregate reserves that will further expand our product offerings, particularly for certain concrete applications, as well as our geographic coverage in markets in the San Francisco and Los Angeles metro areas.
‘This acquisition will enhance our logistics capabilities with the ship delivery of aggregate products and provide Vulcan with a platform for future distribution outlet opportunities along the Pacific coast.’
Mr Hill added: ‘The acquisition is especially timely given California’s recent passage of SB1, which will provide US$52 billion for key transportation infrastructure projects over the next 10 years, in addition to passage of local ballot measures that add more than US$1 billion annually for infrastructure projects in key growth markets that we serve.’
Subject to obtaining the required approvals and other customary closing conditions, the transaction is expected to complete in the fourth quarter of 2017.