Vulcan Materials Co., the nation’s largest aggregate producer, came to a merger agreement with U.S. Concrete.

Under the terms of the agreement, Vulcan will acquire all of the issued and outstanding shares of U.S. Concrete common stock for a purchase price of $74 per share in cash. This represents a total equity value of $1.294 billion, according to Vulcan.

The boards of directors of both companies unanimously approved the transaction, and the companies expect the deal to close in the second half of this year. The deal is subject to U.S. Concrete shareholder approval, regulatory clearance and other customary closing conditions.

U.S. Concrete, headquartered in Euless, Texas, operates in metro areas that complement Vulcan’s existing footprint. With 27 aggregate operations serving California, Texas and the Northeast – ones that shipped 12.6 million tons in 2020 – Vulcan says the acquisition of U.S. Concrete’s portfolio represents a natural addition to its business.

The transaction also includes ready-mixed concrete operations that will expand Vulcan’s service capabilities.

“U.S. Concrete is an important Vulcan customer in a number of key areas, and this transaction is a logical and exciting step in our growth strategy as we further bolster our geographic footprint,” says Tom Hill, chairman and CEO of Vulcan. “Ronnie Pruitt and his team have done an excellent job growing and operating its business, and we look forward to welcoming the U.S. Concrete employees to the Vulcan family. This is a merger of two corporate cultures that value people, technology, operating disciplines, customer service and the entrepreneurial spirit, and it positions Vulcan to further drive sustainable, long-term shareholder value.”

Pruitt, president and CEO of U.S. Concrete, described the deal as a major milestone in U.S. Concrete’s history.

“We are proud of the work our team has accomplished over the past few years to achieve operational excellence and serve our customers and believe combining with Vulcan will provide us with the opportunity to build on our progress,” Pruitt says. “Our combined organization will share an extensive and successful track record of acquisitions and greenfield development, and we look forward to working with Tom and the entire Vulcan family to close this transaction and integrate our two strong businesses.”

Vulcan’s acquisition of U.S. Concrete comes just two weeks after Martin Marietta, the nation’s second-largest aggregate producer, came to an agreement to acquire Lehigh Hanson’s West Region business for $2.3 billion in cash.

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