Investing.com — Shares of U.S. Concrete (NASDAQ:USCR) popped in Monday’s premarket trading after the company agreed to be acquired by Vulcan Materials (NYSE:VMC) at an equity valuation of $1.29 billion.
U.S. Concrete shares touched $73 in premarket, just a dollar short of the price Vulcan is paying to acquire all of the issued and outstanding shares of the supplier of aggregates and ready-mixed concrete.
VMC shares were slightly in the red.
The deal is seen accretive to Vulcan’s earnings per share in the first full year following closing, expected to happen by December.
The transaction will help Vulcan in attractive growing metropolitan areas including Texas, New York and New Jersey. U.S. Concrete is an important Vulcan customer in a number of key areas.
It is expected to increase Vulcan’s EBITDA by approximately $190 million before synergies.