Rinker bolts-on in the US
At Rinker, our strategy is smart growth. We’ve invested around US$2 billion in more than 50 acquisitions since 1998, together with around US$1 billion in the development of new quarries and operating plants as well as expansion of the base business.
Over the past six months, Rinker has added five more bolt-ons to this smart growth in the U.S. Nally and Haydon, Greenback Crushed Stone, Walling Sand and Gravel Companies, JR and Sons Ready Mix and Union Concrete Company.
Nally & Haydon
Back in November 2006, Rinker announced the acquisition of three quarries and a block plant from Nally & Haydon, LLC, an independent aggregate, block and asphalt producer in southeast Kentucky.
A bolt-on to Rinker Materials’ existing operations in Tennessee and Kentucky, the three quarries are located at Cumberland, Harlan and Pineville in the Central Appalachian region of Kentucky. The block plant is located near Harlan.
Permitted reserves at the three new quarry locations are more than 40 million tons.
The block plant mainly produces “heavy” block for the local coal mining industry – the second largest coal mining region in the US.
Greenback
Later that same month, Rinker also announced the Greenback Crushed Stone, Inc. acquisition, an independent limestone quarry producer in Loudon
County, Tennessee. This acquisition is also a bolt-on to the existing South Central operations of Rinker Materials.
The Greenback quarry enables Rinker Materials to expand into fast growing Loudon County, south west of Knoxville. Rinker Materials currently operates three quarries in the Greater Knoxville area. The quarry has over 90 years of reserves at current production levels.
Walling
Then earlier this year in January, Rinker again expanded the group’s operations in the US Pacific northwest, with the acquisition of one of the leading construction materials producers in Salem, Oregon – the Walling Sand & Gravel companies (Walling).
The number two aggregates producer in Salem, Walling has around 25 per cent of the local market. Walling’s West Salem quarry is the largest quarry in the region. It commenced operations in 2005 and has extensive reserves. Walling also comprises an asphalt plant and paving operation and a concrete plant.
Rinker Materials has an existing business in Portland, Oregon – 50 miles (80 kilometres) north of Salem - which was acquired in 2002. Walling will be a “bolt-on” to the Portland operation.
“The Pacific northwest is an attractive growth market,” says Rinker CEO David Clarke. ”Walling is a well-established business with strong market positions, and is a good strategic fit for Rinker Materials.”
JR & Sons Ready Mix
In January this year, Rinker moved into a new market, the state of Utah - acquiring a quarry, other aggregates assets and four concrete plants from JR & Sons Ready Mix.
JR & Sons’ largest aggregate operation and concrete plant is located on-site to service the 5,800-lot Suncor master-planned Coral Canyon residential development at St George. The other aggregate and concrete operations are located in smaller markets nearby.
The business will continue to be managed by members of the Robinson family, the previous owners.
“The JR & Sons acquisition will be a bolt-on to the group’s existing Las Vegas operations,” says Rinker CEO David Clarke. “This will strengthen our aggregates and downstream positions in one of the fastest–growing regions of the US.
