Rinker Announces Two Further Acquisitions in Tennessee and Utah
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SYDNEY, Australia, Jan.29 -- Rinker Group Limited ("Rinker"; NYSE: RIN; ASX: RIN) today announced two acquisitions by its US subsidiary Rinker Materials -- in Utah in western US and Tennessee, in the US south-east.
The Utah acquisition comprises a quarry, other aggregates assets and four concrete plants from JR & Sons Ready Mix. It enables Rinker Materials to enter a new market in one of the fast-growing regions of Utah -- in the St George area, about 120 miles (190 kilometres) north-east of Las Vegas, along the I-15 freeway corridor.
JR & Sons' largest aggregate operation and concrete plant is located on- site to service the 5,800 lot Suncor master-planned Coral Canyon residential development at St George. The other aggregate and concrete operations are located in smaller markets nearby.
The business will continue to be managed by members of the Robinson family, the previous owners.
Rinker Chief Executive David Clarke said the JR & Sons acquisition would be a "bolt-on" to the group's existing Las Vegas operations.
"This will strengthen our aggregates and downstream positions in one of the fastest-growing regions of the US," he said.
The Tennessee acquisition is Union Concrete Company, Inc. ("Union"), which operates three concrete plants around Knoxville. Knoxville is forecast to benefit from significant growth in commercial construction over the next five years.
The Union transaction follows November's purchase of Greenback Crushed Stone, Inc., ("Greenback") an independent limestone quarry producer in Loudon County, Tennessee and the acquisition in October of Nally & Haydon ("N&H"), comprising three quarries and a block plant in nearby south-east Kentucky.
Mr Clarke said Union was an excellent fit with the existing business in Tennessee, and would enhance the downstream delivery network and the aggregates operations.
"Union strengthens our position as the leading concrete supplier in east Tennessee, enabling us to better serve our customers and grow with them as they expand," he said.
Both acquisitions are expected to earn above their cost of capital within the first year.
These two acquisitions, together with Greenback, N&H, and Walling Sand & Gravel in Oregon (announced last week), together add almost four million tons (3.6 million tonnes) of aggregate and 390,000 cubic yards (300,000 cubic metres) of concrete to Rinker Materials' annual production output.
Rinker has invested around US$2 billion in more than 50 acquisitions since 1998, together with around US$1 billion in the development of new quarries and operating plants and expansion of the base business. One of the world's top 10 construction materials groups, Rinker has operations in aggregates, cement, concrete, asphalt and concrete pipe and products. Annual revenue is over US$5.1 billion. Rinker has over 13,000 employees in 774 sites across the US, Australia and China. Around 80 per cent of group revenue comes from the US.
Source: Rinker Group Limited
CONTACT:
Debra Stirling,
Rinker Group Limited,
+61-2-9412-6680,
+61-419-476-546,
investorrelations@rinker.com.au
Web site: http://rinker.com/
