The aggregate, asphalt, and concrete sectors received good news in June with the passing of a new two-year federal transportation bill. Spending and investment have been on hold for the last few years due to the absence of certainty for federal funding for transportation projects. Since Fall 2009, when the last federal transportation bill expired, the market has been operating under short-term funding extensions. While the overall levels of funding are not overly impressive, the two-year commitment is significant for those in the construction materials sector.

The House of Representatives and Senate cleared H.R. 4348, the Moving Ahead for Progress in the 21st Century Act, and President Obama signed the bill into law on July 6. The House of Representatives voted 373 to 52 to pass the conference report and send the measure to the Senate. The Senate voted 74 to 19 to pass the conference report.

The $105 billion bill will provide $39.7 billion for highway funding in fiscal year 2013, increasing to $40.3 billion in fiscal year 2014. These numbers compare to $39.1 billion in fiscal year 2012. The bill is expected to create or save about 3 million jobs.

Recent transactions

Oldcastle, Inc. recently announced that it completed 10 bolt-on deals across its operations during the first six months of 2012, adding 47 million tons of aggregate reserves. Its architectural productions business expanded its national packaged product operations with two deals adding plants in Texas, Louisiana, and Florida. It also added to its masonry operations with an acquisition in Rhode Island. These deals were valued at approximately $111 million.

VantaCore Partners acquired Morgantown, W.Va.-based Laurel Aggregates, Inc., which manufactures construction materials. VantaCore Partners LP, through its subsidiaries, produces and supplies rock, sand, and gravel products for the infrastructure, commercial, and residential markets in Tennessee, Kentucky, Louisiana, and Mississippi.

The Douglassville, Pa., manufacturing facility of Rinox Pavers LLC (which manufactures landscape and hardscaping products) was acquired by Techo-Bloc, Inc., also based in Douglassville, Pa. It operates as a subsidiary of Haines & Kibblehouse, Inc. Techo-Bloc was founded in 1989 and is based in St-Hubert, Canada, with production facilities in Montreal, Canada, and Pen Argyl, Pa.

ERD Aggregate Corp. sold its Granite Hill property, which includes 120 million tons of granite reserves on 342 acres located in Georgia, to an undisclosed buyer. The price was announced as $3.4 million.

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