Vulcan Materials Company
VMC today announced that it has completed asset sale transactions which
generated total gross proceeds of approximately $149 million. These
transactions include the sale of reclaimed and excess land in California, one
small quarry in rural Virginia, and a percentage of future production at four
aggregates quarries in South Carolina. The South Carolina transaction is with
Plum Creek Timber Company, Inc. PCL, one of the largest landowners in
the U.S. and a leading manager of timberlands and other natural resources, and
enables Vulcan to unlock long-term value in these quarries tax-efficiently,
while maintaining full ownership as well as operational and marketing control.
With this transaction, Vulcan received $75 million in exchange for an
estimated 10.5% royalty interest in the sale of approximately 144 million tons
of production over 25 years.
Pre-tax gains on these transactions total approximately $120 million, $47
million of which will be recognized in the fourth quarter of 2012 with the
remainder to be recognized over the life of the transaction with Plum Creek.
Consistent with its long-term strategy of enhancing aggregates reserves
positions in the fastest-growing regions and urban markets of the U.S., Vulcan
will further strengthen its aggregates businesses in Texas and Georgia with
the acquisition of two active quarries and additional reserves adjacent to two
existing quarries for a total investment of approximately $80 million. Total
reserves related to these investments are approximately 91 million tons.
In the fourth quarter the Company retired $135 million of debt as scheduled.
As of December 31, 2012, the Company's cash and cash equivalents, net of the
above transactions, was in excess of $200 million.
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