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Commodities & Metals

Summit Materials Files for IPO

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By Chris Lange Updated Published
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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.

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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

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.

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