Sam is a professional trader and the lead stock market news writer at AskTraders. After starting his career in the forex market, Sam now focuses on gold and stocks with a preference for fundamental and macroeconomic analysis.
Shares of US Concrete Inc (NASDAQ: USCR) are rallying premarket on Monday after the announcement that Vulcan Materials Company (NYSE: VMC) will acquire the company in a deal worth $1.29 billion.
Vulcan will acquire US Concrete for $74.00 per share in cash. They said the acquisition “represents a natural addition” to its business and one that will expand its service capabilities.
It is also expected to increase Vulcan's EBITDA by approximately $190 million before synergies.
Ronnie Pruitt, President and CEO of U.S. Concrete, commented: “Today's announcement that we are combining with Vulcan, a leading producer of construction aggregates, marks a major milestone in U.S. Concrete's history.
“We are proud of the work our team has accomplished over the past few years to achieve operational excellence and serve our customers and believe combining with Vulcan will provide us with the opportunity to build on our progress.”
Tom Hill, Chairman and CEO of Vulcan Materials Company, said: “U.S. Concrete is an important Vulcan customer in a number of key areas, and this transaction is a logical and exciting step in our growth strategy as we further bolster our geographic footprint.”
US Concrete's share price is currently trading at $72.86, up 27.51%. Vulcan Materials' share price is unmoved from Friday's close at $179.60.
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