Vulcan reaches an agreement to acquire Aggregates USA LLC

Vulcan Materials Company, Birmingham Ala.-based and the nation’s largest producer of construction aggregates announced an agreement with SPO Partners to acquire Aggregates USA LLC for $ 900 million in cash.

SPO Partners, California-based, holds over $ 7 billion in assets under management and invests in a wide range of industries including basic materials, media, telecom, energy, power and real estate.

By acquiring Aggregates USA which operates 31 facilities serving high growth market in Georgia, Florida, Tennessee, South Carolina and Virginia, this strategic project will enhance Vulcan to better serve high growth markets in the southeastern US region.

Vulcan will expand its service offerings in Georgia with three granite quarries, along with 16 rail distribution yards in Georgia, South Carolina and Florida. The acquisition includes also 12 limestone quarries in Tennessee and southwest Virginia, and the company Vulcan may divest several quarries in Tennessee in order to expedite the regulatory approval process.

Vulcan expects that this transaction would be accretive to the company’s earnings per share in the first year following the close.