Summit Announces Agreement to be Acquired by Quikrete for $11.5B

Core Viewpoint - Summit Materials, Inc. (SUM) is set to be acquired by Quikrete Holdings, Inc. for $11.5 billion, which includes a cash offer of$52.50 per share, providing immediate cash value to shareholders and potential opportunities for employees and customers [1][4]. Acquisition Details - The acquisition will merge Summit's aggregates, cement, and ready-mix concrete businesses with Quikrete's concrete and cement-based products, creating a vertically integrated North American construction materials provider [3]. - The transaction price reflects a 36% premium over Summit's unaffected 90-day volume weighted average price and a 29% premium over its unaffected share price, with approval from both companies' boards [4]. Timeline and Structure - The acquisition is expected to close in the first half of 2025, pending regulatory approvals and customary closing conditions. Post-acquisition, Summit will operate as a privately held subsidiary and will no longer be listed on the NYSE [5]. Stock Performance - SUM shares have increased by 30.1% over the past three months, outperforming the Zacks Building Products - Concrete and Aggregates industry's growth of 13.6%. The company's performance is supported by a disciplined portfolio optimization approach and value pricing strategy [6]. - The Zacks Consensus Estimate indicates a year-over-year earnings per share (EPS) growth of 35.5% for the fourth quarter and 3.8% for 2024, with a trailing four-quarter earnings surprise of 19.1% on average [8].