Rock Products

AUG 2017

Rock Products is the aggregates industry's leading source for market analysis and technology solutions, delivering critical content focusing on aggregates-processing equipment; operational efficiencies; management best practices; comprehensive market

Issue link: http://rock.epubxp.com/i/860167

Contents of this Issue

Navigation

Page 73 of 131

72 • ROCK products • August 2017 www.rockproducts.com Aggregates Industry Almanac Agg Industry Market Report Private Equity Transaction Activity and Valuations GF Data Resources, a provider of detailed information on business transactions ranging in size from $10 million to $250 million, provides quarterly data from over 200 private equity firm contributors on the number of completed transactions. Figure 5 provides the number of completed transactions from GF Data contributors, the average Total Enterprise Value (TEV)/ EBITDA multiple and the average amount of debt utilized in the transaction computed as a multiple of EBITDA. The data, although not industry specific, shows valuations and debt levels during the quarter consistent with levels experienced over the last two years as private equity valuations have remained relatively flat. Company Spotlight Summit Materials reported Q1 2017 organic cement sales volume and average selling price growth of 17.6 percent and 6.3 percent, respectively. "Our business performed ahead of expectations during the first quarter, as organic growth in materials sales volumes and average selling prices contributed to strong year-over-year increases in gross margins and Adjusted EBITDA," stated Tom Hill, CEO of Summit Materials. "Demand within our core early-cycle residential and commercial construction markets continues to accelerate, while a combination of federal and state level funding for critical infrastructure projects remains a significant opportunity for us, particularly in Texas where a combination of FAST Act, Proposition 1 and Proposition 7 funding combine to support robust multi-year investment in public infrastructure." Summit has completed a total of six acquisitions year- to-date. The four acquisitions since February have added a combined 90 million tons of permitted aggregate reserves to the Summit portfolio. Additionally, Summit has a pipeline of more than 20 transactions under review, four of which are in late-stage diligence. Eagle Materials recently reported record results for its fiscal year ended March 31, 2017, with revenue of $1.2 billion, up 6.0 percent while Q4 experienced 11.0 percent growth year-over-year. Fiscal year 2017 cement volume increased 2.0 percent, concrete volume increased 14.0 percent and aggregates volume increased 21.0 percent compared to 2016. On February 10, 2017, Eagle Materials completed the previously announced acquisition of Cemex S.A.B. de C.V.'s Fairborn, Ohio cement plant and related assets for $400 million. The transaction was funded with existing cash and borrowings from its bank credit facility. Transaction Spotlight CRH plc acquired Mulzer Crushed Stone Inc., Hardrives Inc., Chard Tiling & Excavating Inc., Columbia Asphalt & Gravel Inc., Costello Industries Inc. and certain quarry assets in the Greater Montreal Area on February 28, 2017. The acquisitions and investment spend amounted to approximately $531 million. Mulzer is one of the largest privately held aggregates producers in the U.S. and operates six quarries, five sand and gravel operations, fourteen aggregates yards, four ready-mix concrete plants and three asphalt plants, serving the Ohio and Kanawha river valleys.

Articles in this issue

Links on this page

Archives of this issue

view archives of Rock Products - AUG 2017