Divestiture of CA Concrete Ops Complete, Makes First Foray Into Colorado

Research evidence excerpt

Divestiture of CA Concrete Ops Complete, Makes First Foray Into Colorado

USA | Building Products

Vulcan Materials EquityJuneResearch9, 2026

FLASH NOTEDivestiture of CA Concrete Ops Complete,

RATING BUYMakes First Foray Into Colorado

PRICE $269.98^

VMC completed the divestiture of its CA ready-mix assets, and announced it

will use some of the proceeds in a tuck-in acquisition with aggregates assets PRICE TARGET | % TO PT $360.00 | +33%

in Southern CO and distribution yard in DFW. We expect VMC to remain active 52W HIGH-LOW $331.09 - $252.35

on M&A, and we estimate it has $3.8 bil of dry powder for deals potentially in FLOAT (%) | ADV MM (USD) 98.6% | 319.40

the Midwest and Pacific NW. MARKET CAP $35.7B

TICKER VMC

^Prior trading day's closing price unless otherwise

Has completed divestiture of CA concrete operations. VMC completed its previously announced noted.

divestiture of 41 ready-mix plants and two cement terminals to CalPortland cement (Taiheiyo

Cement) for $712 mil in cash. The business generated $524 mil in sales in 2024, which consists

of VMC's legacy California downstream assets and the recently acquired Superior downstream

assets. The remainder of VMC's concrete segment consists of 33 facilities largely in the VA/DC

area, which is viewed as core. The timing of the deal closing got delayed from YE25 due to regulatory

bottlenecks. The divestiture is a continuation of VMC's aggregates first strategy, and divesting non-

core assets that were part of larger vertically integrated transactions like USCR and Superior. Post

close, California will represent ~17% of VMC's sales (prior 22%).

First foray into CO with bolt-on. In tandem with the news it completed the divestiture, VMC

announced the acquisition of Brannan Sand & Gravel's Southern Colorado and Dallas / Fort