Overland Park, Kan.-based Ash Grove Cement Co. received a preliminary, non-binding competing proposal from a third party – rumored to be Summit Materials – to acquire Ash Grove at an indicated enterprise value of $3.7 billion to $3.8 billion. The company currently has an Agreement and Plan of Merger with CRH plc, under which CRH will acquire Ash Grove for $3.5 billion.
In accordance with the Agreement and Plan of Merger with CRH, Ash Grove has advised CRH of the competing proposal; the window shop period (as defined in the merger agreement) with respect to this proposal has been extended until Oct. 20, 5 p.m. EST. Ash Grove noted that there can be no assurance that such a competing proposal will lead to a definitive offer or, if such an offer is made, that the board of directors will determine that such offer is superior to the transaction with CRH plc.
Ash Grove also announced that it has established a record date of Oct. 5, 2017, and a meeting date of Nov. 1 for a special meeting of its stockholders to, among other things, consider and vote on a proposal to adopt the previously announced Agreement and Plan of Merger with CRH plc. When it approved the Agreement and Plan of Merger with CRH, the Ash Grove board of directors determined to recommend, and it continues to recommend, that stockholders vote in favor of the proposal to adopt the Agreement and Plan of Merger with CRH.
In 2016, Ash Grove shipped 8.2 million tons of cement from eight cement plants and two deep-water import terminals located throughout the Midwest, Texas and western United States. In addition to cement manufacturing facilities, the company operates 52 ready mix concrete plants, 25 sand and gravel plants, 20 limestone quarries and nine packaged products plants.
