39.calmat/teitelman/dt1st/mark2nd

No. 39

Vulcan Materials Buys CalMat

The purchase of Los Angeles-based CalMat Co., an asphalt and ready-mix concrete producer, by Alabama-based Vulcan Materials Co. has created the nation’s largest company specializing in sand, gravel and crushed stone (materials known in the industry as “aggregates”).

Vulcan’s $760 million cash purchase of CalMat is expected to be finalized during the first quarter. The newly merged company will be doing business in 21 states, taking advantage of a growing need for infrastructure projects. CalMat is also providing asphalt for the Alameda Corridor project connecting downtown L.A. with the ports of Los Angeles and Long Beach.

As part of the agreement, CalMat will become a subsidiary of Vulcan but will keep its name and stay in Los Angeles. Because the two companies are not in competition with each other, no production facilities are expected to be closed, officials said.

Vulcan has agreed to assume $130 million of CalMat debt, and in a tender offer that will expire Jan 1, it has offered to pay $31 a share for CalMat stock. Both companies’ stocks have risen since the deal was announced.

Karen Teitelman