Vulcan Materials Co. has agreed to buy construction supplies company Polaris Materials Corp. for around C$252 ($202 million). The acquisition will expand Vulcan's presence in California.
Vulcan says the purchase has good timing because the state of California recently passed the SB1 bill, which will provide $52 billion for transportation infrastructure projects over the next ten years. Polaris, located in Vancouver, British Columbia, supplies materials including gravel. The target owns a port in Vancouver along with five distribution yards in California.
"This acquisition will enhance our logistics capabilities with the ship delivery of aggregate products and provide Vulcan with a platform for future distribution outlet opportunities along the Pacific Coast," says Vulcan CEO Tom Hill. Vulcan, headquartered in Birmingham, Alabama, produces construction materials such as gravel, sand and stone.
Construction companies have been receiving robust interest from buyers. Apogee Enterprises Inc. (Nasdaq: APOG) bought windows manufacturer EFCO Corp.; The Home Depot Inc. (NYSE: HD) is buying rental equipment provider Compact Power Equipment.; Lowe’s Cos. Inc. (NYSE: LOW) has reached a deal to buy home improvement tools maker Maintenance Supply Headquarters.
Fasken Martineau DuMoulin LLP and Dorsey & Whitney LLP are advising Polaris. Wachtell Lipton Rosen & Katz LLP, McInnes Cooper and Blake Cassels & Graydon LLP are advising Vulcan.