EULESS, TX--(Marketwired - April 10, 2017) - U.S. Concrete, Inc. (NASDAQ: USCR) (the "Company" or "U.S. Concrete") announced today that it has strengthened its aggregates capacity and ability to supply their New York City ready-mixed concrete operations by acquiring the assets of Corbett Aggregates Companies, LLC ("Corbett"), a premier provider of high quality concrete sand located in Quinton, New Jersey. The acquisition furthers U.S. Concrete's vertical integration strategy and self-sufficiency in internal aggregates consumption.
Corbett features approximately 401 acres of land with over 35 million tons of proven reserves. These high quality fine aggregates will support U.S. Concrete's family of businesses in the New York metropolitan market and its third-party customers.
In connection with the deal, U.S. Concrete was assigned a long-term lease with the South Jersey Port Corporation for an export dock located approximately six miles from the aggregates operation, as well as the exclusive right to move coarse and fine aggregates through the North Shore Terminal located on Staten Island, New York.
Accordingly, U.S. Concrete will use its aggregates import docks located in the New York Metropolitan Area, which are operated by its wholly-owned subsidiary New York Sand and Stone, for distribution of the sand. The ability to move these materials by water reduces the Company's dependency on third party suppliers and helps alleviate metropolitan traffic congestion by taking a large number of trucks off an overused road network.
"The acquisition of Corbett meets our strategic objective of increasing self-sufficiency in our internal aggregates sourcing especially in an area of the country with quickly depleting fine aggregates resources," said Bill Sandbrook, President and CEO of U.S. Concrete. "Additionally, the ability to ship concrete sand to our metropolitan New York City markets by water is another strategic benefit to this acquisition as trucking becomes ever more expensive due to traffic congestion and increasing bridge tolls. This acquisition will have an immediate positive impact on our operating results and we look forward to continuing to identify other growth opportunities in our targeted markets."
About U.S. Concrete, Inc.
U.S. Concrete serves the construction industry in several major markets in the United States through its two business segments: ready-mixed concrete and aggregate products. The Company has 155 standard ready-mixed concrete plants, 16 volumetric ready-mixed concrete facilities, and 17 producing aggregates facilities. During 2016, U.S. Concrete sold approximately 8.1 million cubic yards of ready-mixed concrete and approximately 5.6 million tons of aggregates. For more information on U.S. Concrete, visit www.us-concrete.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This press release contains various forward-looking statements and information that are based on management's belief, as well as assumptions made by and information currently available to management. These forward-looking statements speak only as of the date of this press release. The Company disclaims any obligation to update these statements and cautions you not to rely unduly on them. Forward-looking information includes, but is not limited to, statements regarding: the expansion of the business; the opportunities and results of our acquisitions; the prospects for growth in new and existing markets; encouraging nature of volume and pricing increases; the business levels of our existing markets; ready-mixed concrete backlog; ability to maintain our cost structure and monitor fixed costs; ability to maximize liquidity, manage variable costs, control capital spending and monitor working capital usage; and the adequacy of current liquidity. Although U.S. Concrete believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that those expectations will prove to have been correct. Such statements are subject to certain risks, uncertainties and assumptions, including, among other matters: general and regional economic conditions; the level of activity in the construction industry; the ability of U.S. Concrete to complete acquisitions and to effectively integrate the operations of acquired companies; development of adequate management infrastructure; departure of key personnel; access to labor; union disruption; competitive factors; government regulations; exposure to environmental and other liabilities; the cyclical and seasonal nature of U.S. Concrete's business; adverse weather conditions; the availability and pricing of raw materials; the availability of refinancing alternatives; results of litigation; and general risks related to the industry and markets in which U.S. Concrete operates. Should one or more of these risks materialize, or should underlying assumptions prove incorrect, actual results or outcomes may vary materially from those expected. These risks, as well as others, are discussed in greater detail in U.S. Concrete's filings with the Securities and Exchange Commission, including U.S. Concrete's Annual Report on Form 10-K for the year ended December 31, 2016.