Barclays notes the report saying that Summit Materials (SUM) was approached by Quikrete, stating that “at first glance there could be a good amount of deal logic” for such a combination. It is “reasonable to assume” that privately-held Quikrete has $1.5B-plus in EBITDA, so the two entities together then would potentially be at $2.5B-plus in EBITDA, says the analyst, whose “preliminary thought” is that Quikrete could offer a low-to-mid $50 price per share for Summit. Barclays has an Equal Weight rating and $45 price target on Summit Materials shares.
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