Summit Materials, an acquisition platform in the building materials market, has acquired Cornejo & Sons, a Wichita, Kansas-based producer of and and gravel, asphalt and ready-mix concrete. No financial terms were disclosed. Summit was formed last fall by The Blackstone Group, Silverhawk Capital Partners and former BHP Billiton CEO Charles Goodyear. It has up to $780 million in capital commitments.
Summit Materials LLC, a building materials company, today announced that it has concluded the acquisition of Cornejo & Sons, Inc. based in Wichita, Kansas. Cornejo & Sons, formed in 1952 by Jess Cornejo engages in the production of sand and gravel, asphalt and ready mix concrete, as well as paving, construction, recycling and C&D landfill services. Cornejo & Sons’ long history of providing exceptional products and services and strategic location complements Summit’s growing heavy materials business. The Cornejo & Sons management team will remain in place.
“We are delighted to expand our presence in Kansas with the addition of Cornejo & Sons, a first class operation. I look forward to working with Ron Cornejo and Marty Cornejo to grow the business and provide new opportunities for Summit and its customers.”
Tom Hill, CEO of Summit stated, “We are delighted to expand our presence in Kansas with the addition of Cornejo & Sons, a first class operation. I look forward to working with Ron Cornejo and Marty Cornejo to grow the business and provide new opportunities for Summit and its customers.”
Ron Cornejo, CEO of Cornejo & Sons said, “We are pleased to join forces with Summit Materials so that we can continue to grow our business. Partnering with Summit Materials allows the Cornejo family and our employees the opportunity to grow dynamically as the economy improves. It also allows us to offer more products, services and value to our clients and communities.”
Summit Materials was formed in 2009 to develop a leading business in the aggregates and heavy-side building materials sector through strategic acquisitions. Summit Materials was founded by its CEO Tom Hill and a group of investors that include members of its management team, Blackstone Capital Partners V L.P., Silverhawk Capital Partners and Charles “Chip” Goodyear, former CEO of BHP Billiton. Tom Hill is the former CEO of Oldcastle Inc., the $14 billion US division of CRH, plc. This is the third acquisition for Summit. In September 2009 Summit acquired Hamm, Inc., an aggregates, landfill, asphalt and construction company located in Perry, Kansas. In February, 2010, Summit acquired Hinkle Contracting Company, an integrated materials and construction business headquartered in Paris, Kentucky.
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 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 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