|Blackstone, Silverhawk, Tom Hill and Management form Summit Materials|
Washington, DC, September 8, 2009 - Summit Materials, LLC has been formed to develop a leading business in the aggregates and heavy-side building materials sector through strategic acquisitions. The company was founded by its new CEO Tom Hill and a group of investors that include members of its management team, Blackstone Capital Partners (an affiliate of The Blackstone Group), Silverhawk Capital Partners and Charles "Chip" Goodyear, former CEO of BHP Billiton. The investors have made a commitment to Summit Materials of up to $780 million. In conjunction with its formation, Summit Materials has announced its acquisition of Hamm, Inc., a privately-held aggregates, landfill, asphalt and construction company located in Perry, Kansas. Hamm is Summit Materials' first acquisition and is a platform company for future growth and development in the Midwest.
Commenting on Summit Materials, CEO Tom Hill said "We are excited about the first class management team we have recruited to Summit Materials, all of whom I have worked with or known for many years. Summit Materials' partnership with Blackstone and Silverhawk has given us a strong capital base and significant strategic resources. Additionally, I am excited about Chip Goodyear's investment and participation on our Board; his experience will be invaluable to Summit Materials as we build our business. Our management team and our investors believe now is a great time to invest in the sector and build a large and profitable new company in the aggregates and heavy-side building materials industry".
Mr. Hill is the former CEO of Oldcastle Inc., the $15 billion US Division of CRH, plc. Other members of Summit Materials' management team include Michael Brady - Executive Vice President, Tony Keenan - Chief Financial Officer, Anya Fonina - Vice President of Development, Damian Murphy - Regional President, Rod Gamble - Vice President of Operations, Brienne Wode - Finance Manager and Angela Dziubek- Business Manager and Executive Assistant. While at Oldcastle, Mr. Hill led the team that built Oldcastle into the third largest aggregates, the largest asphalt and the sixth largest ready mix producer in the US. Summit Materials' management has worked together for many years and has completed over 150 transactions as a team.
Chip Goodyear is an investor in Summit Materials and will sit on its Board.
Neil Simpkins, Senior Managing Director at Blackstone, added "We are thrilled to partner with Tom Hill and his highly experienced management team to help build Summit Materials into a leading heavy-side building materials company. Tom's track record of creating value for shareholders at CRH through buying and integrating heavy-side building materials assets is outstanding. We also believe that the US heavy-side building materials sector represents significant opportunities for growth and that Summit Materials is an excellent platform from which to pursue such opportunities."
Hamm Inc, Summit Materials' first acquisition, is an integrated aggregates, landfill, and asphalt and construction company with 250 employees. It is the largest aggregate company in northeast Kansas with significant strategically-located aggregate reserves and 35 limestone quarries. It is also one of the largest asphalt and construction contractors in the state. Hamm's management team, led by Rod Hamm, will remain with the business in their current roles. Financing for the Hamm acquisition was provided by Bank of America.
Ted Gardner, a Founder and Managing Partner of Silverhawk, commented "Tom has been a successful leader in the heavy-side materials business, and he has been a good friend for over 30 years. Silverhawk is excited to partner with Tom, his team, Blackstone and Chip in this endeavor. The Hamm acquisition is an attractive first deal for us, and we look forward to creating a successful and sizeable business at Summit Materials."
About Summit Materials
Summit Materials was formed in early 2009 to acquire and grow companies in the aggregates, ready-mix concrete, asphalt paving and construction, and concrete products industries. Its office is located in Washington DC. Further information about Summit Materials is available at www.summit-materials.com.
About The Blackstone Group
Blackstone (NYSE:BX) is one of the world's leading investment and advisory firms with total fee-earning assets under management of over $90 billion. Blackstone seeks to create positive economic impact and long-term value for our investors, the companies it invests in, the companies it advises and the broader global economy. Blackstone's alternative asset management businesses include the management of corporate private equity funds, real estate funds, hedge funds, funds of funds, debt funds, collateralized loan obligation vehicles (CLOs) and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement service. Further information is available at www.blackstone.com.
About Silverhawk Capital Partners
Silverhawk is an independent investment group established in 2005, to invest in management buyouts and other private equity transactions in the Growth Industrial, Energy/Natural Resources and Business Service sectors. The partners of Silverhawk have invested as a team and operated businesses since 1989. Further information is available at www.silverhawkcapitalpartners.com.
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