Summit Materials’ pending Cementos Argos transaction recommended

Summit Materials announced that proxy advisory firms ISS and Glass Lewis have recommended that Summit shareholders vote in favor of all proposals in connection with its pending combination with Argos North America, the U.S. operations of Cementos Argos, at the company’s upcoming Special Meeting of Stockholders on Thursday, January 11. In making their respective recommendations, ISS and Glass Lewis stated: “Support for the transaction is warranted in light of compelling strategic rationale and the expected financial benefits. The combined entity will have increased scale, a more diversified geographic presence, and the transaction is expected to result in significant cost savings and be accretive to free cash flow per share.” “The deal should greatly enhance the company’s scale and geographic reach, which could better position the company to take advantage of various anticipated tailwinds relating to the supply and demand for cement. The company also expects to realize at least $100M in annual run-rate cost synergies from the proposed transaction through various means, including operational efficiencies, optimizing sourcing and increased utilization of the import terminals’ network.” The transaction is expected to close in 1Q24, subject to customary closing conditions, including approval by Summit Materials shareholders.