Commodities & Metals

Summit Materials Files for IPO

Home construction
Thinkstock
Summit Materials Inc. has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). No terms were given in the filing, but the offering is valued up to $100 million. The company intends to list on the New York Stock Exchange (NYSE) under the symbol SUM. The underwriters for the offering are Citigroup and Goldman Sachs.

This company is one of the fastest growing in the construction materials industry in the United States. Summit’s materials include aggregates, which it supplies across the country, with a focus on Texas, Kansas, Kentucky, Utah and Missouri, and cement, which its supplies primarily in Missouri, Iowa and Illinois. Within these markets, it offers customers a single-source provider for construction materials and related downstream products through its vertical integration.

In addition to supplying aggregates to customers, Summit uses its materials internally to produce ready-mixed concrete and asphalt paving mix, which may be sold externally or used in paving and related services businesses. According to the company, this vertical integration creates opportunities to increase aggregates volumes, optimize margin at each stage of production and provide customers with efficiency gains, convenience and reliability.

There was a 197% increase in revenue between the end of 2010 and the end of 2014, as compared to an average increase of roughly 38% in revenue reported by other competitors over the same period.

Summit Materials is a holding company, and its sole material asset is a controlling equity interest in Summit Holdings. Summit Materials operates and controls all the business and affairs and consolidates the financial results of Summit Holdings and its subsidiaries. Suffice it to say, Summit Materials is acting as a master limited partnership with Summit Holdings acting as the general partner.

ALSO READ: 20 Cities With the Widest Gap Between the Rich and Poor

Summit intends to use all the net proceeds from this offering to purchase newly issued L.P. units from Summit Holdings and L.P. units from certain of its pre-IPO owners. It intends to cause Summit Holdings to use a portion of the net proceeds from the offering to pay all or a portion of the deferred purchase price of $80.0 million for the Davenport acquisition, with any remaining net proceeds to be used for general corporate purposes.

FULL FILING

Credit Card Companies Are Doing Something Nuts

Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.

It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.

We’ve assembled some of the best credit cards for users today.  Don’t miss these offers because they won’t be this good forever.

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.