Colombian cement maker Cementos Argos said Thursday it will merge its US operations with Summit Materials in a cash and stock deal worth $3.2 billion.
The deal will create one of the largest building materials supplier in the US, according to a press release.
Cementos Argos said it will receive $1.2 billion in cash along with 54.7 million Summit Materials shares valued at around $2 billion. The transaction will leave it with a 31% stake in the combined company.
Cementos Argos will use around $700 million from the deal to pay off the debt of its US operations and another $500 million to reduce its net debt in Colombia, the statement said.
Anne Noonan, Summit’s CEO will remain at the head of the combined company, the US firm said in an investor presentation on Thursday. The deal is expected to close in the first half of 2024.