Summit Materials to combine with Argos USA in transaction valued at $3.2B

Summit Materials (SUM) announces it has entered into a definitive agreement with Cementos Argos (CMTOY) under which Summit will combine with Argos North America, the U.S. operations of Cementos Argos in a cash and stock transaction valued at $3.2 billion. Argos USA is among the largest cement producers by total installed capacity in its areas of operations, which include the Southeast, Mid-Atlantic, and Texas. With its asset footprint comprising four integrated cement plants, approximately 140 ready-mix plants and eight ports, Argos USA’s portfolio is well positioned to capitalize on positive demand drivers across public infrastructure, residential, and commercial end-markets. Under the terms of the agreement, which has been unanimously approved by both companies’ Boards of Directors, Cementos Argos will receive approximately 54.7 million shares of Summit stock and approximately $1.2 billion in cash, subject to closing adjustments, valuing Argos USA at approximately $3.2 billion based on Summit’s closing share price of $36.00 as of September 6, 2023. Cementos Argos will own approximately 31% of the combined company on a fully diluted basis upon the closing of the transaction.