Summit Materials, Cementos Argos combine in transaction valued at $3.2B

Cementos Argos announced it has entered into a definitive agreement with Summit Materials under which the U.S. operations of Cementos Argos, Argos North America Corp, will combine with Summit in a cash and stock transaction valued at $3.2B. Cementos Argos will achieve a strategic objective of acquiring a substantial equity stake in a New York Stock Exchange listed company through its 31% ownership stake in Summit. This combination unlocks estimated annual synergies of approximately $100 million per year, derived from optimized sourcing, enhanced operational efficiency, increased utilization of the import terminals’ network, and an augmented asset base to increase the use of alternative fuels. The transaction is subject to antitrust regulatory approval, approval of Summit’s shareholders, and other customary closing conditions. Both Summit and Argos North America will continue to operate independently until the necessary legal and regulatory approvals are met.