Vulcan Materials to buy Florida Rock for $4.6 billion
NEW YORK (Reuters) - Vulcan Materials Co. (VMC.N) on Monday said it has agreed to acquire Florida Rock Industries Inc. FRK.N in a cash and stock deal that values the two construction materials makers at around $4.6 billion.
Florida Rock shareholders can elect to receive either 0.63 shares of the new holding company or $67 in cash for each Florida Rock share, with the buyer seeking to ensure that an aggregate 70 percent of Florida Rock shares will be converted into cash and 30 percent converted into stock.
The transaction, to close in mid-year 2007, is expected to be neutral to Vulcan Materials' earnings in 2007 and accretive to earnings in 2008 and beyond, the company said.
Florida Rock President and Chief Executive John Baker will join Vulcan Materials' board of directors after the deal, and Vice President Tom Baker will become president of Vulcan Materials' new Florida Rock Division headquartered in Jacksonville, Florida, Vulcan said.
Florida Rock's operations in Georgia, Virginia, Maryland and other states will be integrated into existing Vulcan Materials divisions.
Following the close of the transaction, Vulcan Materials will have approximately $3.7 billion in debt.
Shares of Vulcan, based in Birmingham, Alabama, closed at $111.81 on Friday. Florida Rock shares closed at $46.96.
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