Concrete Products covers the issues that attract producers of ready mixed and manufactured concrete focusing on equipment and material technology, market development and management topics.
Issue link: https://cement.epubxp.com/i/64524
NEWS SCOPE BY CP STAFF Vulcan Materials compares assets, profits and prospects against Martin Marietta's portfolio In an updated investor presentation rein- forcing its objections to Martin Marietta Materials' hostile, stock exchange offer, Vulcan Materials Co. cites market, operat- ing and product-pricing metrics where it excels against its would-be merger partner, coupled with differences between each company's asset values. It prepared the presentation in ad- vance of the Vulcan annual shareholders meeting next month, when Martin Mari- etta's exchange offer (0.5 share for each Vulcan share) expires, and prospective meetings during which Martin Marietta would address Department of Justice/Antitrust Division concerns over a proposed merger's market concentra- tion effects. To enlighten shareholders of its reserves riches and management track record, Vulcan contends: • Its aggregates assets lie in faster-grow- ing markets than those of Martin Mari- etta. Projected population growth figures from 2010–2020 in each com- pany's top-five states indicate: Vulcan, 16.1 million, or 75 percent more than Martin Marietta, 9.2 million. • It serves 18 of the top 25 U.S. metropol- itan areas ranked by projected popula- tion growth versus nine for Martin Marietta. • It has consistently achieved higher ag- gregates price performance since 2006: Vulcan, 5.0 percent com- pounded annual growth rate versus Martin Marietta, 3.6 percent. Measur- ing 2011 cash gross profit unit mar- gin, Vulcan realized $4.08 per ton of aggregates, or 32 percent above Mar- tin Marietta, $3.10 per ton. • Its operating leverage, key to EBITDA (Earnings Before Interest, Taxes, Depre- ciation and Amortization) growth as markets recover, was demonstrated in the 2003–2006 recovery, when Vulcan earnings grew by $555 million, or 70 percent compared to Martin Marietta, $193 million, or 57 percent. With early signs of market recovery, fourth quarter 2011 saw Vulcan realize a $23.6 million gross profit gain against the same pe- riod in 2010 versus Martin Marietta's $1.3 million gain. In addition, Vulcan reports that its non-aggregates businesses—chiefly ready mixed concrete production and ce- ment production or distribution in mar- kets including Virginia, Florida and California—are at cyclical troughs and have considerable upside potential. The full shareholder presentation is posted at www.realaggregatesleader.com. Bonsal American seals five TXI bagging sites Oldcastle's Charlotte, N.C.-based Bonsal American business has acquired the TXI Package Products unit of TXI Operations, LP, a subsidiary of Dallas-based Texas In- dustries, Inc. The transaction spans five plants specializing in dry mix concrete and other packaged products located around Texas' three major markets: Dallas/Ft. Worth, Houston and Austin/San Antonio. "TXI Package Products is an excellent strategic fit with Bonsal American and Oldcastle," says Bonsal American President David Maske. "This acquisition further strengthens our commitment to the build- ing products category and aligns well with our growth initiatives for North America." TXI sells bagged dry mix concrete, ce- ment, bulk mortar and private-label prod- ucts through large and independent retailers, building materials distributors and commercial masonry distributors/con- tractors. As part of the deal, Bonsal Amer- 10 | MAY 2012 ican acquires the Sakrete license for the state of Texas; ownership of the Maximizer brand of lightweight concrete mixes; and, TXI's preblended masonry mortar business, which will be converted to Bonsal Ameri- can's Amerimix brand. The suitor will also enter into a licensing agreement to be a packager and seller of TXI bagged cement in Texas. TXI Package Products will operate as a separate region within Bonsal Ameri- can, with no change to either personnel or product/brand mix designs. A 2010 licensing agree- ment afforded Bonsal American production of TXI's Maximizer brand at up to 20 sites outside Texas. Brand ownership shifts to Bonsal Ameri- can in the TXI Package Products deal. JENSEN PRECAST ADDS TWO CALIF. PLANTS IN TEICHERT DEAL Already one of the top independent producers in underground, utility and non-architectural structures, Sparks, Nev.-based Jensen Precast has strengthened its West Coast presence with the acquisition of Teichert Precast Concrete Products plants in Sacra- mento and Stockton, Calif. The trans- action positions the buyer with eight Golden State plants. "Teichert has been in the precast con- crete business in northern California for 70 years," says Don Jensen, founder and chief executive officer. "They've built a great reputation of providing excellent customer service and quality products. That's the same way we've built Jensen Precast since 1968, so agreeing to ac- quire their precast assets when they de- cided to sell was an easy decision." "We feel this arrangement with Te- ichert Precast will be of great benefit to both companies," adds Jensen Precast President Tony Shanks. "We're happy we can step in to continue to serve Te- ichert's current customers with ex- panded product lines such as handholes and meter boxes; onsite wastewater treatment; prepackaged pump and lift stations; stormwater treatment; rainwa- ter harvesting; retaining walls; and box culverts—to name a few." For years, the two companies have provided precast concrete infrastructure products to many of the same customers in central and northern California, in- cluding AT&T;, Caltrans, Frontier Commu- nications, Merced Irrigation District, Modesto Irrigation District, Pacific Gas & Electric, and Turlock Irrigation Dis- trict. The Stockton and Sacramento op- erations join 11 Jensen Precast plants in Nevada, Arizona, California and Hawaii. Among Teichert Precast staff transitioning to Jensen Precast are Di- vision Manager Dave Bargsten and Sales Manager Garrett Flores. WWW.CONCRETEPRODUCTS.COM