Summit Materials Announces Definitive Agreements to Acquire Everist Materials and Razorback Concrete Company

Company Release - 1/6/2017 6:30 AM ET

DENVER--(BUSINESS WIRE)-- Summit Materials, Inc. (NYSE: SUM, “Summit” or the “Company”), a leading vertically integrated construction materials company, today announced its entry into definitive agreements to acquire Colorado-based Everist Materials, LLC (“Everist”) and Arkansas-based Razorback Concrete Company (“Razorback”), subject to customary closing conditions. Both transactions are expected to close on or before February 28, 2017.

The materials-based acquisitions of Everist and Razorback collectively bring aggregates operations with more than 100 million tons of permitted reserves in Colorado and Arkansas, in addition to an extensive network of vertically integrated ready-mix concrete and asphalt plants in growing public and private end-markets in proximity to Summit’s existing portfolio of materials-based assets.

“The pending acquisitions of Everist and Razorback enable Summit to expand its integrated, materials-based model in growing markets throughout west-central Colorado and Arkansas,” stated Tom Hill, CEO of Summit. “We are pleased to welcome the Everist team, along with accomplished leaders Kent and Keith Ingram and their team at Razorback, to the Summit family of companies. Both companies bring proven operations, high-caliber assets and long-established customer relationships that provide an ideal entry point into early-cycle markets where we see long-term potential for profitable growth.”

“As one of the largest suppliers of aggregates, ready-mixed concrete and asphalt in west-central Colorado, Everist will significantly expand our existing operations in the region to include markets bordering Denver,” continued Hill. “We view this region as an exciting opportunity for Summit, where a combination of transportation infrastructure projects along the I-70 corridor and robust private construction spending activity stand to benefit our business in the years ahead.”

“Founded in 1965, Razorback is an aggregates-based business with the largest ready-mixed concrete operations in central and northeastern Arkansas, representing a new regional market for Summit,” added Hill. “Importantly, given Razorback’s proximity to Summit’s existing cement distribution terminal in Memphis, Tennessee, the acquisition is consistent with our long-term strategy to develop materials-based positions in select markets along the Mississippi River served by our cement business. We believe the Arkansas market is poised for higher construction activity levels over the longer term, driven by positive employment and population trends and increased public infrastructure spending.”

About Summit Materials

Summit Materials is a leading vertically integrated materials-based company that supplies aggregates, cement, ready-mix concrete and asphalt in the United States and British Columbia, Canada. Summit is a geographically diverse, materials-based business of scale that offers customers a single-source provider of construction materials and related downstream products in the public infrastructure, residential and nonresidential, and end markets. Summit has a strong track record of successful acquisitions since its founding and continues to pursue growth opportunities in new and existing markets. For more information about Summit Materials, please visit www.summit-materials.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the federal securities laws, which involve risks and uncertainties. Forward-looking statements include all statements that do not relate solely to historical or current facts, and you can identify forward-looking statements because they contain words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “trends,” “plans,” “estimates,” “projects” or “anticipates” or similar expressions that concern our strategy, plans, expectations or intentions. Any and all statements made relating to the expectations for our anticipated benefits from recent acquisitions, the macroeconomic outlook for our markets, potential acquisition activity, our estimated and projected earnings, margins, costs, expenditures, cash flows, sales volumes and financial results are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may change at any time, and, therefore, our actual results may differ materially from those expected. We derive many of our forward-looking statements from our operating budgets and forecasts, which are based upon many detailed assumptions. While we believe that our assumptions are reasonable, it is very difficult to predict the impact of known factors, and, of course, it is impossible to anticipate all factors that could affect our actual results.

In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved. Important factors could affect our results and could cause results to differ materially from those expressed in our forward-looking statements, including but not limited to the factors discussed in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended January 2, 2016. Such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov.

We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

Summit Materials, Inc.
Investor and Media Relations:
Noel Ryan, 303-515-5155
noel.ryan@summit-materials.com

Source: Summit Materials, Inc.