Two Major M&A Deals In the News This Week

3 min read | June 10, 2021 11:32 AM PDT | By Team Kalkine Media

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Two Major M&A Deals In the News This Week — Image source: TZIDO SUN,Shutterstock

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Summary

QTS Realty Trust (NYSE:QTS) agreed to be bought in a US$10 billion deal.

Texas-based US Concrete, Inc. (NASDAQ:USCR) will be acquired for US$1.29 billion.

Datacenter provider QTS Realty Trust (NYSE:QTS) agreed to be bought in a US$10 billion deal, while the Texas-based US Concrete, Inc. (NASDAQ:USCR) will be acquired for US$1.29 billion. The stocks of QTS Realty and US Concrete jumped 21 percent and 29 percent, respectively, on Monday, June 7, after the companies agreed to sell.

Blackstone Group Inc. will buy QTS, while Vulcan Materials to acquire US Concrete. The final transactions will complete in the second half of 2021.

Blackstone To Buy QTS In US$10B Deal

QTS on June 7 said Blackstone (NYSE:BX) agreed to buy it in an all-cash transaction valued at US$10 billion, including debt. The New York-based investment management firm will acquire the Kansas-headquartered QTS through its subsidiaries, including its Real Estate Income Trust.

Blackstone will pay US$78 per share for QTS outstanding shares. The deal value is arrived at after adding a premium of 21 percent to QTS’ June 4 closing price. The QTS stock will cease trading on the NYSE after the transaction. However, QTS will continue to operate under its senior management team. In addition, QTS will get a 40-day window to explore other proposals.

QTS has offices in North America and Europe. It generated US$569.4 million in revenue and US$14.6 million in net income in 2020.

Vulcan To Buy U.S. Concrete For US$1.29B

Alabama-based Vulcan Materials Company (NYSE:VMC), which produces construction aggregates, entered a definitive agreement to buy U.S. Concrete for US$1.294 billion in cash.

It will acquire entire shares of U.S. Concrete for US$74 per share, representing a premium of around 30 percent on U.S. Concrete’s closing price on Friday.

Vulcan expects the acquisition to boost its EBITDA by US$190 million before synergies and be accretive to its EPS in the first full year after the deal.

U.S. Concrete has 27 aggregates operations in California, Texas and the Northeast. It shipped 12.6 million tons in 2020.

Share Performance

QTS has a market capitalization of US$5.37 billion. The stock gained 24 percent in the past year and 26 percent YTD. QTS ended Monday’s trading at US$78.15, up 21.18 percent.

Meanwhile, US Concrete trades its stock on NASDAQ and has a market capitalization of US$1.25 billion. Its jumped 82 percent YTD and 163 percent in the past year.

US Concrete closed at US$73.87 on Monday, up 29.28 percent.

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