Data Mining June 2011

Therese Dunphy

June 1, 2011

Merger and acquisition activity on the rise

By George Reddin

Deal activity is picking up in the construction materials sector, although it has yet to be reflected in announced done deals. The gestation period for a typical deal — the time from a prospective seller deciding to sell and actually selling — can be six months to a year or more. We are seeing a definite rise in deal activity and, with any luck, this should mean increased done-deal announcements in the third and fourth quarters of this year.

Recent transactions

Monarch Cement Co., based in Humboldt, Kan., has acquired Kay Concrete Materials Co. Inc., based in Monett, Mo. Kay Concrete Materials Co., Inc. supplies concrete/pre-mixed reinforcement fibers used in concrete paving, streets, patching, parking lots, driveways, paths, trails, and sidewalks.

Main Street Capital Corp., a Houston-based business development company specializing in equity, equity-related, and debt investments in small and lower-middle market companies, has made an investment in River Aggregates, LLC, based in Porter, Texas. River Aggregates, LLC, incorporated in 2011, processes and sells sand and gravel products.

Texas Industries, Inc. (TXI), has acquired the ready-mix operations of Transit Mix Concrete and Materials Co., a subsidiary of Trinity Industries, Inc., that serves the central Texas market stretching from north of San Antonio to Hillsboro. This investment allows TXI to optimize the company‘s growing resources in this region, including the expansion of the Hunter cement plant, which is currently underway. It also enhances TXI’s Austin aggregates operations. As a part of the transaction, TXI transferred existing aggregate operations to Trinity Materials, Inc., also a subsidiary of Trinity Industries, Inc., including the Anacoco Sand and Gravel Plant, which serves the Texas and Louisiana markets, and the Paradise and Beckett Sand and Gravel Plants, which both serve the north Texas marketplace.

LoJac Materials Inc., a subsidiary of LoJac Holdings Corp., has acquired Brown’s Concrete and Block Co., Inc. Brown’s Concrete and Block Co., Inc. manufactures and distributes concrete masonry products. The company was founded in 1950 and is based in Dickson, Tenn. LoJac Materials, Inc. manufactures and distributes concrete blocks. The company was founded in 1987 and is based in Lebanon, Tenn.

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

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