Vulcan Announces Sale of Future Production
BIRMINGHAM, Ala., Sept. 25, 2013 /PRNewswire/ -- Vulcan Materials Company (NYSE: VMC), the nation's largest producer of construction aggregates, has entered into a transaction with Plum Creek Timber Company, Inc. (NYSE: PCL) for the sale of an interest in the future production at four quarries in Atlanta, Georgia.
With this transaction, Vulcan will receive $154 million in exchange for a percentage royalty interest in 255 million tons of aggregate production over approximately 25 years. The transaction allows Vulcan to unlock long-term value in these quarries, tax efficiently, while maintaining full ownership and operational control of the quarries, fixed assets, and land. A pre-tax gain of $154 million, less modest transaction expenses, will be recognized over the life of the transaction.
Donald M. James, Chairman and Chief Executive Officer, said, "In Plum Creek, we have a partner that shares our long-term view of the value and growth in the aggregates business and is investing based on that view. This transaction provides us capital to deploy in strategic investments in our aggregates business and to strengthen our balance sheet."
About Vulcan Materials Company
Vulcan Materials Company, a member of the S&P 500 Index, is the nation's largest producer of construction aggregates, a major producer of asphalt mix and concrete and a leading producer of cement in Florida.
SOURCE Vulcan Materials Company