Quikrete could offer ‘low-to-mid $50’ price for Summit Materials, says Barclays

Barclays notes the report saying that Summit Materials (SUM) was approached by Quikrete, stating that “at first glance there could be a good amount of deal logic” for such a combination. It is “reasonable to assume” that privately-held Quikrete has $1.5B-plus in EBITDA, so the two entities together then would potentially be at $2.5B-plus in EBITDA, says the analyst, whose “preliminary thought” is that Quikrete could offer a low-to-mid $50 price per share for Summit. Barclays has an Equal Weight rating and $45 price target on Summit Materials shares.