Vulcan sells assets, invests in others
Vulcan Materials Co. announced that it has sold assets of just under $150 million dollars.The transactions include the following:
- The sale of reclaimed land in California;
- A quarry in Virginia; and
- A percentage of future production at four South Carolina quarries.
The South Carolina aggregate production deal is with Plum Creek Timber Co., Inc. According to Vulcan, it allows the company to “unlock long-term value in these quarries tax efficiently, while maintaining full ownership as well as operational and marketing control.” Vulcan reportedly received $75 million in exchange for an estimated 10.5-percent royalty interest in the sale of approximately 144 million tons of production over 25 years.
In addition, Vulcan announced that it will strengthen its presence in Texas and Georgia through the acquisition of two quarries. The cost of the acquisition was approximately $80 million, Vulcan says, with reserves of approximately 91 million tons.
“These transactions mark important progress on Vulcan’s planned asset sales, debt reduction, and strategic investment programs to strengthen our balance sheet and our aggregates asset portfolio, which already delivers among the highest profit margins in our industry,” Don James, Vulcan chairman and CEO, said in a press release. “Our management team will continue its focus on selling non-core assets, reducing debt, and building our aggregates positions in key markets.”
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