Published Jan. 21, 2013
Plum Creek acquired an interest in about 144 million tons of production at four quarries in the Greenville and Spartanburg markets, according to a news release.
“Nothing changes from the standpoint of how the quarries will be operated,” a Vulcan spokesman said today.
Vulcan received $75 million in exchange for an estimated 10.5% royalty interest from the production and sale of the crushed stone produced at the quarries for approximately 25 years.
“This is an attractive, cash-accretive investment in a familiar natural resource asset for Plum Creek,” said Rick Holley, president and CEO of Plum Creek, in a news release. “The investment adds to our existing construction materials royalty streams, and the quarries will continue to be owned and operated by Vulcan, a leader in the industry. We are optimistic that the favorable growth prospects for aggregate demand in these markets will enhance future earnings potential.”
Vulcan operates 11 quarries in South Carolina, including a facility in the Olympia section of Columbia.
"These transactions mark important progress on Vulcan's planned asset sales, debt reduction and strategic investment programs to strengthen our balance sheet and our aggregates asset portfolio, which already delivers among the highest profit margins in our industry,” said Donald M. James, chairman and CEO of Vulcan Materials, in a news release. “Our management team will continue its focus on selling noncore assets, reducing debt and building our aggregates positions in key markets."
The deal also included the sale of reclaimed and excess land in California and one small quarry in rural Virginia.