Summit Materials Announces Divestiture of Hinkle Contracting to CRH Americas Materials
May 16 2022 - 8:15AM
Business Wire
Summit Materials, Inc. (NYSE: SUM) ("Summit," “Summit
Materials,” “Summit, Inc.” or the "Company"), a leading vertically
integrated construction materials company, today announced the
divestiture of Kentucky-based Hinkle Contracting Company, LLC
(“Hinkle”) to an affiliate of CRH Americas Materials, Inc., a
subsidiary of CRH PLC (“CRH Americas”).
“Hinkle was among Summit’s early acquisitions and an integral
part of the Company’s foundational growth,” said Summit Materials
CEO Anne Noonan. “Moving forward, we are pleased to have reached a
mutually beneficial transaction with CRH Americas for Hinkle at an
attractive valuation of over 10x 2021 Adjusted EBITDA, delivering
value to our stakeholders. We are committed to working with CRH
Americas on a smooth transition for the Hinkle employees and
customers.”
The Hinkle divestiture supports the Company’s Elevate Summit
Strategy which includes a disciplined and ongoing portfolio
optimization designed to drive Summit forward with its strategic
priority of being a materials-led company with selective
participation in high return downstream businesses. The Hinkle sale
represents Summit’s tenth business divestiture since launching the
Elevate Summit strategy in March of 2021.
“The implementation of our Elevate Summit long term strategy
continues to drive improved execution and financial performance as
evidenced by record reported 2021 Net Revenue, Net Income, Adjusted
Cash Gross Profit, and Adjusted EBITDA,” continued Noonan. “Our
Market Leadership focus, which combines organic growth and
portfolio optimization - together with a stronger balance sheet
position will provide Summit with the financial flexibility to
support future growth through continued greenfield investments and
the pursuit of strategic acquisitions to further enhance
shareholder value.”
Further details on the Company’s portfolio optimization
initiatives, guidance, and EBITDA impact for 2022 will be provided
at Summit Materials investor day, scheduled for May 24, 2022.
Please see the investor relations page of the Company’s website for
meeting details.
Stephens Inc. acted as the exclusive financial advisor to Summit
on the transaction.
About Summit Materials
Summit Materials is a leading vertically integrated
materials-based company that supplies aggregates, cement, ready-mix
concrete and asphalt in the United States and British Columbia,
Canada. Summit is a geographically diverse, materials-based
business of scale that offers customers a single-source provider of
construction materials and related downstream products in the
public infrastructure, residential and nonresidential end markets.
Summit has a strong track record of successful acquisitions since
its founding and continues to pursue growth opportunities in new
and existing markets. For more information about Summit Materials,
please visit www.summit-materials.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains "forward-looking statements" within
the meaning of the federal securities laws, which involve risks and
uncertainties. Forward-looking statements include all statements
that do not relate solely to historical or current facts, and you
can identify forward-looking statements because they contain words
such as "believes, " "expects," "may," "will," "should," "seeks,"
"intends," "trends," "plans," "estimates," "projects" or
"anticipates" or similar expressions that concern our strategy,
plans, expectations or intentions. These forward-looking statements
are subject to risks, uncertainties and other factors that may
cause our actual results, performance or achievements to be
different from future results, performance or achievements
expressed or implied by such forward-looking statements. We derive
many of our forward-looking statements from our operating budgets
and forecasts, which are based upon many detailed assumptions.
While we believe that our assumptions are reasonable, it is very
difficult to predict the effect of known factors, and, of course,
it is impossible to anticipate all factors that could affect our
actual results.
In light of the significant uncertainties inherent in the
forward-looking statements included herein, the inclusion of such
information should not be regarded as a representation by us or any
other person that the results or conditions described in such
statements or our objectives and plans will be realized. Important
factors could affect our results and could cause results to differ
materially from those expressed in our forward-looking statements,
including but not limited to the factors discussed in the section
entitled "Risk Factors" in our Annual Report on Form 10-K for the
fiscal year ended January l, 2022. Such factors may be updated from
time to time in our periodic filings with the Securities and
Exchange Commission ("SEC"), which are accessible on the SEC's
website at www.sec.gov. We undertake no obligation to publicly
update or revise any forward-looking statement as a result of new
information, future events or otherwise, except as required by
law.
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version on businesswire.com: https://www.businesswire.com/news/home/20220516005323/en/
Investor Contact Andy Larkin VP, Investor Relations Summit
Materials, Inc. Andy.Larkin@summit-materials.com
Media Contact Heidi Frankosky VP, Communications and Workforce
Engagement and Culture Summit Materials, Inc.
Heidi.Frankosky@summit-materials.com
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