Audax Acquires Ready Mixed Concrete Co.

Completing a $210 million acquisition of Southern Equipment Company d/b/a Ready Mixed Concrete Co. in November 2004 – its sixth since June – Boston-based Audax Group took over from private shareholders the leading provider of ready-mixed concrete in North Carolina, South Carolina, and southern Virginia. An extensive network of concrete plants and mixing trucks deliver concrete to thousands of residential and commercial construction sites. It was another network, however, that helped finalize the transaction – ACG’s network – says Jay Jester of Audax Group. Two investment banking firms, McColl Partners LLC of Charlotte, N.C., and The Orr Group of Winston-Salem, N.C., advised Ready Mixed on the deal. Along with Jester, representatives from both firms have been active ACG participants for many years. Was this an example of an “InterGrowth Deal?”Neither group would comment on the timing of the first conversations, but both groups attended InterGrowth, and both Jester and McColl Partners’ Chairman, Hugh McColl, were speakers at the conference in Boca Raton, Fla., last April. “That is the beauty of the casual atmosphere at InterGrowth,”says Jester. “I’ve attended InterGrowth for the last 12 years. I never expect to come home with a briefcase full of deals, but I always bring a home a pocketful of business cards that I know will result in years and years of deal flow.” Even if the deal wasn’t first discussed in Boca, the personal relationships forged at the conference were essential to the quick process and smooth closing. “Both McColl and Orr Group are top-flight firms,”says Jester. “As they always do, they ran a great process. Every deal has its issues and hiccups, and that is where the relationships really come into play. We had our share of tough issues and tough calls, but the history and the friendships allow you to keep perspective.” Laney Orr, III, Managing Director of Orr Group, contacted Audax early in the process. “I have known Jay for over 20 years. He is someone that I respect tremendously. Every deal has its challenges, but Audax was true to it’s word. In the end, it was a great deal for all of Ready Mixed shareholders as well as Audax. Audax has acquired a fantastic company with superior management that has a track record of growing through acquisitions. “I expect that you will hear a lot more about this company, and it will be a tremendous investment for Audax, its investors and management,”says Orr. Adds Eric Andreozzi, Managing Director of McColl Partners, “ACG and the InterGrowth conference in particular provide a rich landscape across which we can easily network with other professionals in the M&A and financing business. “We continually refresh our relationships at ACG-sponsored events, and these conversations many times lead to ideas that become solid investments. Ready Mixed is another example of how we helped partner a fantastic operating company with a well regarded financial sponsor.” Jay C. Jester Senior VP The Audax Group ACG Boston [email protected] Copyright 2005 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com http://www.majournal.com