Vulcan Materials Co has closed its acquisition of Florida Rock Industries, Inc, for total consideration to Florida Rock shareholders of approximately $4.2bn based on the closing price of Vulcan stock on November 15, 2007. Florida Rock is a producer of construction aggregates, cement, concrete and concrete products in the Southeast and Mid-Atlantic states. According to Vulcan, the deal gives the company with an enhanced presence in Florida markets and in other Southeast and Mid-Atlantic states while also bringing Vulcan more than two billion tons of aggregates reserves in markets where reserves are increasingly scarce.
Under the terms of the agreement, Vulcan Materials Company stockholders are to receive one share of common stock in a new holding company, whose subsidiaries will be Vulcan Materials Company and Florida Rock, for each Vulcan Materials Company share. Former Florida Rock stockholders will receive either 0.63 shares of the new holding company or $67 in cash for each Florida Rock share, subject to proration. Vulcan also declared quarterly dividend of 46 cents per share, payable December 10 to shareholders of record on November 26 of the new holding company’s common stock. Birmingham, Alabama-based Vulcan Materials is a producer of construction aggregates and other construction materials.