By Aatreyee Dasgupta and Kannaki Deka

Nov 25 (Reuters) - Summit Materials ( SUM ) said on

Monday rival Quikrete would acquire the company in a cash deal

valued at $11.5 billion, in a move to capitalize on higher

demand for building materials.

The sector's deal-making activity has been heating up due to

rising U.S. government infrastructure spending and anticipation

of growing demand for materials.

Summit had said in October it expected public infrastructure

to remain a source of steady activity in 2025.

The company's shares, however, have been trading at a

discount to its industry peers such as Vulcan Materials ( VMC )

and Martin Marietta Materials ( MLM ).

Privately held Quikrete had approached Summit with an

acquisition offer in October, Reuters had reported.

The concrete maker's $52.50 per share offer represents about

a 29.2% premium to Summit's closing price on Oct. 23, a day

before Reuters reported the talks.

Quikrete's offer equates to an about $9.2 billion deal

on an equity basis, according to a Reuters calculation.

Founded in 1940, Atlanta, Georgia-based Quikrete is one of

the largest manufacturers of packaged concrete and cement mixes

in North America.

Denver, Colorado-based Summit is a provider of construction

materials such as cement, ready-mix concrete and asphalt. It

also offers services such as construction and paving.

Morgan Stanley and Evercore acted as financial advisors to

Summit, while Davis Polk & Wardwell LLP served as its legal

advisor.

Wells Fargo served as a financial advisor to Quikrete and

provided a debt-financing commitment for the transaction.

The transaction is expected to close in the first half of

2025.

Shares of Summit fell about 2% in premarket trading.