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Concrete-maker Quikrete has struck a $9.2 billion deal for Summit Materials that would merge the two largest producers of building materials in the nation, The Wall Street Journal reports.
Privately held Quikrete, based in Atlanta, is expected to pay $52.50 a share in cash for Summit, the companies said Monday, confirming an earlier report from The Wall Street Journal. Including debt, the deal values Summit at $11.5 billion.
Deal activity in the building-materials sector has been picking up thanks to increased government spending on infrastructure projects. Summit Materials last year announced it was combining with the U.S. arm of Colombian concrete-maker Cementos Argos, now Summit’s largest shareholder, in a $3.2 billion deal. That company is expected to be supportive of the deal announced Monday.
