Summit Materials Completes $3.2B Merger with Argos North America Corp.
Summit Materials, Inc. (NYSE: SUM) has successfully completed its merger with Argos North America Corp., the U.S. arm of Cementos Argos S.A., in a deal worth $3.2 billion. The merger, which was agreed upon on September 7, 2023, received overwhelming approval from Summit shareholders at a special meeting held on Thursday.
Focus on Synergy and Returns: Summit Materials CEO
Anne Noonan, President and CEO of Summit Materials, expressed the company’s commitment to delivering synergy commitments and industry-leading returns for shareholders. The merger with Argos North America Corp. will allow Summit Materials to bring together its resources with Argos’ expertise in the construction materials industry. The combined entity aims to capitalize on synergies and deliver value to its shareholders.
Combined Entity Expands Resources to Serve Multiple Markets
With the completion of the merger, the newly formed entity is expected to leverage its expanded resources to serve a wide range of markets, including public infrastructure, residential, and non-residential sectors. The combination of Summit Materials and Argos North America Corp. brings together two leading providers of construction materials, positioning the entity strongly in the market.
Summit Materials’ History of Successful Acquisitions and Growth
Summit Materials has a history of successful acquisitions and growth in both new and existing markets. The merger with Argos North America Corp. is another step in the company’s strategic expansion plans. With its track record of integration and growth, Summit Materials is well-positioned to harness the synergies resulting from the merger and drive further success in the construction materials industry.
Morgan Stanley & Co. Advises Summit Materials in Merger with Argos
Morgan Stanley & Co. LLC served as the financial advisor for Summit Materials in the merger with Argos North America Corp. The advisory services provided by Morgan Stanley enabled Summit Materials to navigate the complexities of the transaction and ensure a successful outcome. Legal counsel for Summit Materials was provided by Davis Polk & Wardwell LLP and Davis Graham & Stubbs LLP.
In conclusion, Summit Materials has completed its $3.2 billion merger with Argos North America Corp., marking a significant milestone for the construction materials industry. The merger allows Summit Materials to expand its resources and reach to serve a diverse range of markets. With a focus on delivering synergy commitments and industry-leading returns, Summit Materials is poised to create value for its shareholders in the years ahead.
Analyst comment
Positive news. The merger between Summit Materials and Argos North America Corp. is expected to bring together resources and expertise, allowing the combined entity to capitalize on synergies and deliver value to shareholders. With a history of successful acquisitions and growth, Summit Materials is well-positioned to harness the benefits of the merger and drive further success in the construction materials industry. The expanded resources will enable the entity to serve a wide range of markets, resulting in potential market growth.
