Vulcan Materials Company, a large producer of construction aggregates, announced that it has reached a definitive agreement with SPO Partners to acquire its aggregates business, Aggregates USA LLC for $900 million in cash. Aggregates USA LLC operates 31 facilities serving high growth markets in Georgia, Florida, Tennessee, South Carolina and Virginia.

“We are pleased to have reached agreement with SPO Partners for these strategic assets, which enhance our ability to serve high growth markets throughout the southeastern U.S.,” said Vulcan's Chairman and Chief Executive Officer Tom Hill. “With the addition of these quarries and related assets, Vulcan will be able to capitalize on continuing increases in state highway funding programs in Georgia, Florida, South Carolina, Tennessee, and Virginia, and on the continued private sector growth across the region. This transaction will provide Vulcan with long-term high quality reserves across the entire portfolio. Aggregates USA operates efficient, high productivity facilities run by strong teams, and we welcome them to our company.”

The acquisition complements and expands Vulcan's service offerings in Georgia with three granite quarries —two of which have rail capabilities extending the company's reach into important markets — along with 16 rail distribution yards in Georgia, South Carolina and Florida. In addition, the acquisition includes 12 limestone quarries in eastern Tennessee and southwest Virginia. Vulcan may divest several quarries in Tennessee to a third party in order to expedite the regulatory approval process.

The transaction is subject to customary closing conditions and regulatory provisions under the Hart-Scott-Rodino Act. Vulcan expects the transaction to be accretive to the company's earnings per share in the first year following the close.

SPO Partners is a Mill Valley, California-based investment partnership that employs a long-term, value-oriented and highly concentrated approach to investing in companies in the public and private markets. With more than $7 billion in assets under management, SPO invests across a wide range of industries including basic materials, media, telecom, energy, power and real estate.

Vulcan Materials Company, a member of the S&P 500 index with headquarters in Birmingham, Ala., is the nation's largest producer of construction aggregates and a major producer of other construction materials.

For more information, visit www.vulcanmaterials.com.

This story also appears on Aggregate Equipment Guide.

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