2012 Closes with a Burst of M&A Activity


February 1, 2013

By George H. Reddin


As expected, 2012 ended with a flurry of merger and acquisition activity. The outlook for deal activity in 2013 is good; however, there remains some concern and uncertainty about how Congress and the White House will deal with the spending side of the fiscal cliff debate.


Recent transactions

In December, Oldcastle Materials, Inc. acquired a majority stake in Trap Rock Industries, Inc. Trap Rock Industries, Inc. engages in the production of hot-mix asphalt and crushed stone for contractors and government agencies. The company was founded in 1966 and is based in Kingston, N.J.

Oldcastle Materials, Inc. also acquired selected assets in Pennsylvania and Maryland from Haines & Kibblehouse, Inc. in December 2012. The assets included a quarry, a sand and gravel operation, and two asphalt plants. Haines & Kibblehouse, Inc., based in Skippack, Pa., provides contracting and demolition services, construction materials, landscape materials, recycling and clean fill, and emergency response services in eastern Pennsylvania, New Jersey, Maryland, and Delaware.

In addition, Oldcastle Materials, Inc. acquired Concrete Materials, Inc. in December 2012. Concrete Materials, Inc., based in Morristown, Tenn., manufactures ready-mix concrete products.

And finally, Oldcastle Materials, Inc. acquired aggregates reserves and mobile equipment from Sidwell Materials, Inc. in December 2012. Sidwell Materials, Inc., based in Zanesville, Ohio, provides limestone, sand and gravel, and ready-mix concrete for residential and commercial construction projects in Ohio.

Jensen Enterprises, Inc., based in Sparks, Nev., acquired assets of Smith Precast, Inc. from U.S. Concrete, Inc. for $4.4 million in December 2012. Smith Precast, Inc., based in Phoenix, Ariz., produces sewer manholes, septic and water tanks, dry well liners, and ready-mix concrete. The proceeds from the sale will be used by U.S. Concrete to repay debt and create liquidity for acquisitions and other growth opportunities.

Granite Construction Inc., based in Watsonville, Calif., acquired Kenny Construction Co. based in Northbrook, Ill. Kenny is a national contractor and construction manager specializing in the power, tunnel, water, and civil markets. The price was $130 million. 

Stock Report
Sources: New York Stock Exchange, NASDAQ, and Wall Street Journal Market Watch. Currency conversion calculated on 1/4/13.









U.S. On-Highway Diesel Fuel Prices
Source: U.S. Energy Information Administration (dollars per gallon, prices include all taxes).









George H. Reddin is a principal in FMI’s Investment Banking practice. He can be reached at 919-785-9286 or at greddin@fminet.com.

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