Denver-based Summit Materials Inc. plans to raise between $376 million to $432.4 million in an initial public offering, according to a filing made with the U.S. Securities and Exchange Commission on Monday.
Summit Materials sells raw materials needed for heavy construction — aggregate, cement, concrete and asphalt.
The company, started in 2009 by CEO Tom Hill, moved its headquarters to LoDo in 2013.
“The private construction market is beginning to rebound, which we believe signals the outset of a strong growth period in our industry and end markets,” the company said in its filing.
The company’s growth has come largely through acquisitions, more than 30 in total, made with borrowed funds and backing from private-equity firms the Blackstone Group and Silverhawk Summit.
The company had $1.06 billion in debt at the end of last year, and the offering proceeds will go to pay down those loans.
Summit Materials plans to issue 22.2 million shares, with the underwriters having rights to issue another 3.3 million shares if demand exists.
Shares are expected to be priced between $17 and $19 each and trade on the New York Stock Exchange under the ticker SUM. At the middle of that range, the company would have a market value of $1.7 billion, according to Renaissance Capital.
Summit Materials reported $1.2 billion in revenues last year with a net loss of $6.3 million. It employed 3,990 people nationwide at the end of 2014.
The company said it ranks in the top 10 aggregate suppliers nationally with 25.4 million tons sold last year and reserves of 2.1 billion tons.
The company said it sold 1 million tons of cement and 2.8 million cubic yards of ready-mixed concrete last year, placing it among the 25 largest cement producers in the country. It also sold 4.3 million tons of asphalt paving mix.
Texas, Kansas, Kentucky, Utah and Missouri account for the bulk of the company’s sales, but Summit Materials has nearly two dozen plants and quarries in Colorado.
The current owners of the company will retain nearly three-quarters of the voting rights in Summit Materials, while the new shareholders will obtain just under a quarter of the voting rights.
Aldo Svaldi: 303-954-1410, asvaldi@denverpost.com or
