10:39 AM EST, 11/25/2024 (MT Newswires) -- Summit Materials ( SUM ) said Monday it agreed to be acquired and taken private by packaged concrete manufacturer Quikrete Holdings in a deal with an enterprise value of about $11.5 billion, including debt.

Shareholders of Summit will receive $52.50 per share in cash, reflecting a roughly 29% premium to its stock price on Oct. 23, the last trading day before the construction materials company announced that it received a non-binding acquisition proposal. Summit's shares declined 1.6% in Monday trading.

The deal, which requires approvals from regulators and Summit's stockholders, is expected to complete in the first half of next year. Summit's largest shareholder, Cementos Argos, agreed to vote in favor of the transaction.

Summit will become a subsidiary of Quikrete and its shares will no longer trade on the New York stock exchange once the deal closes. Quikrete has obtained financing commitment to complete the transaction.

"We are pleased to have reached this agreement which will deliver significant, immediate and certain cash value to our shareholders," Summit Chairman Howard Lance said in a statement. "In reaching this decision, our board carefully considered a range of alternatives and determined that this transaction is the best way to maximize value for our shareholders."

The deal is anticipated to combine Summit's cement and ready-mix concrete businesses with Quikrete's concrete and cement-based products operations to establish a vertically integrated construction materials solutions provider in North America.

In October, Summit reported fiscal third-quarter adjusted earnings of $0.75 a share, down from $0.81 the year before, while revenue jumped 50% year over year to $1.11 billion.

"This acquisition represents a significant milestone in our journey to expand our capabilities and geographic presence," Quikrete Chief Executive Will Magill said. "We look forward to working closely with the talented team at Summit to achieve our shared vision for the future."

Price: 50.79, Change: -0.88, Percent Change: -1.69