Vulcan Announces Additional Acquisitions

Transactions Further Enhance Vulcan's Industry-Leading Aggregates Operations Concentrated in Attractive, High Growth Markets

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Vulcan Materials Company

Sep 30, 2014, 08:30 ET

BIRMINGHAM, Ala., Sept. 30, 2014 /PRNewswire/ -- Vulcan Materials Company (NYSE:VMC), the nation's largest producer of construction aggregates, today reported that it has completed six acquisitions during the third quarter that further expand the Company's footprint and reserve positions in the best markets in America. The most recent acquisitions include five aggregates facilities and associated downstream assets in Phoenix, Arizona and Albuquerque and Santa Fe, New Mexico, as well as an aggregates operation in Delaware serving Northern Virginia and Washington, DC.

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These transactions follow the previously disclosed acquisitions of (i) four aggregates facilities in the San Francisco Bay Area and (ii) aggregates operations and distribution yards that serve the greater Dallas / Fort Worth market and also complement existing Vulcan rail-served markets in Texas. Collectively, through these recent acquisitions, Vulcan has added more than 450 million tons of high quality, permitted aggregates reserves serving markets where such reserves are relatively scarce.

These transactions, totaling approximately $320 million of investment, represent the continued strategic redeployment of capital from the sale of Vulcan's former cement and ready mix concrete business in Florida in the first quarter of 2014. Moreover, the structure of these transactions – along with an earlier investment in reserves at a key quarry serving San Diego – has enabled the Company to defer income taxes on approximately $145 million in capital gains.

Tom Hill, President and Chief Executive Officer, said, "Aggregates are an essential, long-term resource of limited availability and significant value, particularly in the markets we serve. Consistent with our aggregates-focused strategy and ongoing commitment to driving profitability as an industry leader in unit profit margins, these acquisitions further enhance our future earnings potential, especially given the positive momentum we see across our markets.

"We not only expect that these assets will generate attractive returns in their own right, but also that they will create significant synergies with our existing asset base. These acquisitions complement existing aggregates sources and distribution facilities in key growth markets in Arizona, California, Texas and Northern Virginia while also providing access to new markets in New Mexico. We remain disciplined in our acquisition approach and focused on driving increased value for our shareholders as we make Vulcan, the best aggregates franchise in the world, even better."

Vulcan Materials Company, a member of the S&P 500 index, is the nation's foremost producer of construction aggregates and a major producer of asphalt mix and concrete. For additional information about Vulcan, go to www.vulcanmaterials.com.

FORWARD-LOOKING STATEMENT DISCLAIMER
This document contains forward-looking statements. Statements that are not historical fact, including statements about Vulcan's beliefs and expectations, are forward-looking statements. Generally, these statements relate to future financial performance, results of operations, business plans or strategies, projected or anticipated revenues, expenses, earnings (including EBITDA and other measures), dividend policy, shipment volumes, pricing, levels of capital expenditures, intended cost reductions and cost savings, anticipated profit improvements and/or planned divestitures and asset sales. These forward-looking statements are sometimes identified by the use of terms and phrases such as "believe," "should," "would," "expect," "project," "estimate," "anticipate," "intend," "plan," "will," "can," "may" or similar expressions elsewhere in this document. These statements are subject to numerous risks, uncertainties, and assumptions, including but not limited to general business conditions, competitive factors, pricing, energy costs, and other risks and uncertainties discussed in the reports Vulcan periodically files with the SEC.

Forward-looking statements are not guarantees of future performance and actual results, developments, and business decisions may vary significantly from those expressed in or implied by the forward-looking statements. The following risks related to Vulcan's business, among others, could cause actual results to differ materially from those described in the forward-looking statements: those associated with general economic and business conditions; the timing and amount of federal, state and local funding for infrastructure; changes in Vulcan's effective tax rate that can adversely impact results; the increasing reliance on information technology infrastructure for Vulcan's ticketing, procurement, financial statements and other processes could adversely affect operations in the event such infrastructure does not work as intended or experiences technical difficulties or is subjected to cyber attacks; the impact of the state of the global economy on Vulcan's businesses and financial condition and access to capital markets; changes in the level of spending for private residential and private nonresidential construction; the highly competitive nature of the construction materials industry; the impact of future regulatory or legislative actions; the outcome of pending legal proceedings; pricing of Vulcan's products; weather and other natural phenomena; energy costs; costs of hydrocarbon-based raw materials; healthcare costs; the amount of long-term debt and interest expense incurred by Vulcan; changes in interest rates; the impact of Vulcan's below investment grade debt rating on Vulcan's cost of capital; volatility in pension plan asset values and liabilities which may require cash contributions to the pension plans; the impact of environmental clean-up costs and other liabilities relating to previously divested businesses; Vulcan's ability to secure and permit aggregates reserves in strategically located areas; Vulcan's ability to manage and successfully integrate acquisitions; the potential of goodwill or long-lived asset impairment; the potential impact of future legislation or regulations relating to climate change or greenhouse gas emissions or the definition of minerals; and other assumptions, risks and uncertainties detailed from time to time in the reports filed by Vulcan with the SEC. All forward-looking statements in this communication are qualified in their entirety by this cautionary statement. Vulcan disclaims and does not undertake any obligation to update or revise any forward-looking statement in this document except as required by law.

SOURCE Vulcan Materials Company