It was held this Thursday, January 11, 2024, in the Assembly Summit Materials has agreed to the agreement through which that company and Argos USA will merge their assets making the combined entity one of the leading building materials companies in the world's leading economy. This combination of assets will generate approximately US$100 million of synergies Additional EBITDA gains, derived from improved operational efficiencies and shared services.
(Read: Cementos Argos announces closing of second buyback offer).
Approximately 98.8% of the votes cast at today's extraordinary shareholders' meeting voted in favour Approval of a proposal to issue 54,720,000 shares of Summit's Class A common stock, with a par value of $0.01 per share, To Cementos Argos and its affiliates upon the closing of the transactions contemplated by the Transaction Agreement.
“Today’s vote was a clear endorsement by shareholders at the top that they see the strong strategic and financial rationale behind this transformative transaction.”Anne Noonan said,
President and CEO of Summit Materials.
“We are pleased to achieve this significant milestone and as we move toward the closing and seamless integration of Argos USA, we look forward to delivering the strategic and financial benefits we see for all of our stakeholders.” he added.
(Read: How Grupo Argos' business performed in the third quarter.)
Argus politeness
The transaction is expected to close on January 12, 2024. Subject to the satisfaction of the remaining closing conditions set forth in the transaction agreement.
On September 7, 2023, Summit Materials entered into a definitive agreement to merge with Argos United States.
This combination creates the fourth largest cement platform in the United States and accelerate Summit's “Elevate Summit” strategy.
(Read: Grupo Argos opens its second solar farm in Honduras.)
Argos cement
The combined businesses are expected to generate annual synergies of at least approximately $100 million 50% delivery within the first 24 months. Moreover, it is expected that the combination will take place Increase free cash flow per share Between 15% and 25%, thus creating a “strong drive to reduce leverage and invest in organic investments and inorganic growth opportunities,” they stated.
Paola Andrea Galeano Balaguera
Portfolio journalist
