Boston, MA 10/01/2014 (wallstreetpr) – Vulcan Materials Company (NYSE:VMC) has expanded its footprint and Aggregate reserve positions in the U.S after completing the acquisitions of six new assets. The new acquisitions valued at $320 million represent what the company claims to be a strategic deployment of capital for future expansion and growth.
Acquired Assets
Vulcan Materials Company (NYSE:VMC) new acquisitions are’ made of five aggregate facilities in Phoenix, Arizona, New Mexico and Santa Fe associated with downstream assets. The company also acquired an Aggregate operations in Delaware that will be used to serve markets in North Virginia and Washington DC. The new acquisitions come on the heels of previously announced four Aggregate facilities in San Francisco Bay, as well as distribution yards in the greater Dallas/Fort Worth market.
New Acquisitions have allowed Vulcan Materials to add more than 450 million tons of high quality permitted Aggregate reserves considering the reserves are scarce at the moment. The latest transactions, as well as an earlier investment on a key quarry serving San Diego, has allowed the company to defer income taxes of up to $145 million on capital gains.
Focus on Long-term Investments
Aggregates remain an essential long-term investment for the company according to CEO, Tom Hill, as they are scarce meaning their value is always sure to increase with time. The latest investment is expected to contribute a greater chunk on future earnings given the positive ongoing momentum in the industry. Vulcan Materials Company (NYSE:VMC) plans to generate impressive returns through the interaction of the new investments and the existing asset base consequently create new synergies
The CEO has also reiterated that Vulcan Materials Company (NYSE:VMC) remains disciplined in the way it carries out its acquisitions, focused entirely on ensuring shareholder value through high-profit margin acquisitions. The company remains the largest producer of construction aggregates focusing on acquisitions that are expected to spur growth in the future as well as increase market share.
