VMC
🤝 Vulcan Materials acquired Florida Rock Industries in 2007, demonstrating the value of the aggregate business.
💰 The acquisition price of $4.6 billion, a 45% premium, highlights Vulcan’s recognition of Florida Rock’s assets.
🏢 Vulcan Materials leases quarries from FRP Holdings under long-term royalty agreements.
@emeritoquintana:
“The original company, Florida Rock Industries, was sold to Vulcan Materials in 2007, near the peak of the bubble. They paid a 45% premium over the previous day’s stock price, selling it for $4.6 billion, which was a huge amount at the time. The company we are analyzing is the real estate part of Florida Rock Industries, which was called FRP Real Estate Development, now known as FRP Holdings. Over the years, they have been buying more quarries with a royalty model. They buy the quarry and lease it to Vulcan Materials, Cemex, or Martin Marietta, who operate it, and FRP gets a royalty.”
Watch the exact part of the video where Emerito talks about Vulcan Materials here:
View the video on YouTube.
Read more articles featuring the most recent analysis of Vulcan Materials (VMC) at this link: VMC stock.
