Summit Materials Shareholders Approve Combination With Argos USA
Portfolio Pulse from Benzinga Newsdesk
Summit Materials, Inc. (NYSE:SUM) shareholders have approved the issuance of shares as part of the Transaction Agreement with Argos USA, a subsidiary of Cementos Argos S.A. The approval includes issuing 54,720,000 shares of Class A common stock and one share of preferred stock to Cementos Argos and its affiliates. The transaction, expected to close on January 12, 2024, will create the fourth-largest cement platform in the U.S. and is anticipated to generate annual synergies of at least $100 million, with significant free cash flow per share increase.
January 11, 2024 | 9:28 pm
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Summit Materials' shareholders approved a significant stock issuance for the merger with Argos USA, which is expected to create substantial synergies and increase free cash flow per share.
The overwhelming approval by shareholders indicates strong support for the merger, which is expected to create significant financial benefits for the company. The anticipated synergies and increased free cash flow per share are likely to be viewed positively by investors, potentially leading to a short-term increase in stock price.
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