Thank you for sharing!

Your article was successfully shared with the contacts you provided.

JACKSONVILLE, FL-Florida Rock Industries Inc., a prime provider of aggregate used in the construction of office, industrial and retail buildings, is buying US Aggregates Inc. of San Mateo, CA in a cash-debt deal valued at $150-million.

Florida Rock is paying $105 million cash and assuming certain debt and equipment operating leases valued at $45 million.

But the deal still needs the approval of US Aggregates’ shareholders and the blessing of the US Justice Department, which is checking the transaction for compliance with the Hart-Scott-Rodino Act. The sale is tentatively set to close Sept. 30.

Clouding that transaction, however, is a June 1 lawsuit filed against US Aggregates by the New York law firm of Faruqi & Faruqui. The suit alleges US Aggregates issued false and misleading information on the firm’s financial condition that artificially inflated its stock price between April 25, 2000 and April 2, 2001. US Aggregates is answering the suit but declines comment.

US Aggregates’ common stock was trading at $1.24 per share today (July 18), up four cents (3.33%) on volume of 4,300 on the New York Stock Exchange. The stock’s 52-week high-low is $18.75 and 52 cents.

Florida Rock will be acquiring four new markets in Alabama, Tennessee, Mississippi and the Gulf Coast if the transaction goes through. Among the assets Florida Rock is buying are seven operating stone quarries, two sand operations, one ready-mix operation and other permitted and not-yet-permitted stone quarry sites.

Six of the operating stone quarries are in Alabama; the seventh just outside Chattanooga, TN. Florida Rock’s core business has been in Florida and Georgia. Aggregate is made up of crushed stone, sand and gravel, a basic construction material.

The Richmond, VA-based law firm of McGuireWoods is Florida Rock’s legal advisor in the acquisition. Jacksonville, FL is 230 miles north of metro Orlando where Florida Rock operates a Central Florida division.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information

GlobeSt. NET LEASE Awards 2021Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.