Bylt: Real Time Construction News & Market Data
Construction Everyday. Real Time News and AEC Industry Market Data. Powerful News For The Architectural, Engineering & Construction Industries.

Vulcan materials Making Moves – Positioning itself On Infrastructure Bill To Push Stock Higher

vulcanmaterials.com

            St. Louis, Missouri- (VMC ) (U.S.: NYSE) Vulcan Materials is behind the sale of asphalt and construction material supplier Fred Weber Inc., after selling a great portion of its company assets to New Frontier Materials; an investment group composed within Vulcan Materials. (VMC ) (U.S.: NYSE)

            New Frontier Materials was established in 2020 with the set intent of obtaining companies in the construction materials industry. On July 1st, the purchase agreement case of Fred Weber’s asphalt and rock quarry assets closed, supplying the firm with 20 asphalt and quarry sites. This is New Frontier’s first company acquisition.

            Fred Weber has provided materials for some of the region’s greatest construction and road projects since the early 20th century. The company was associated with the rebuild of Interstate 64, Highway 364’s extension, and the construction of Interstate 44. Projects were supplied with asphalt, aggregates and construction services from Fred Weber. Up until 2010, the firm was involved in the waste management business before selling those operations and merging with Millstone Bangert to create Millstone Weber in St. Charles in 2014. Sherrod B. Clarke, CEO of New Frontier Materials, has stated that Fred Weber assets will profitably serve as the foundation to which acquisition of similar businesses will be based off of. Clarke notes, “It’s a platform to look at other companies in the U.S.”.

            Management and operations of Fred Weber’s quarry and asphalt generation will remain in St. Louis while New Frontier’s headquarters will continue to reside in Maryland Heights. The firm will search for possible opportunities nearby considering that St. Louis holds an incredibly stable construction market. Concrete pipes to markets in Missouri, Illinois, and Texas will continue to be dispensed by Fred Weber Inc..

175 employees will stay under Fred Weber Inc. ‘s lines of business but as for about 300 other individuals, they will move under the jurisdiction of New Frontier.

New Frontier’s acquisition of Weber comes during a time when Congress is in the midst of authorizing a $1 trillion infrastructure bill which would allow increases in state funding for bridges and roads. As for Vulcan Materials, the passage of the $1.2 trillion infrastructure package would surely lift the company’s stock and yearly revenue estimates for 2022. Companies in the construction material market are anticipated to become the centralized focus of investors.

With Vulcan being one of the major producers of construction aggregates to this day, the rising demands for the company’s supply seems warranted with the possibility of VMC stock heading for the spotlight.

Vulcan currently is in the process of obtaining the industry giant U.S. Concrete which operates in 27 facilities across California, Texas, and the Northeast. The $1.294 billion purchase is anticipated to close in the later part of 2021. Such a deal would enhance Vulcan’s already existing business and expand their footprint to the New York and New Jersey metropolitan areas.

Since the pandemic lows, Vulcan Materials shares are now up by over 110%. In May, Vulcan Materials reported solid figures for the company’s latest quarter fiscal. For the quarter, total revenue amassed an incredible $1.07 billion. Additionally, each Vulcan share had a year-over-year increase of 166% for both net income and earnings. The business ended the quarter with $722 million in cash on hand which is a 500% year-over-year jump.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More