Vulcan Materials Co., the nation’s largest producer of crushed stone, sand, gravel and asphalt used by the building and road construction industries, said it will sell an interest in production at four metro Atlanta quarries to Plum Creek Timber Co., a major owner of timberland in the state.
The four Vulcan quarries are in Kennesaw, Norcross, Stockbridge and Friendship, which is northeast of Atlanta near the Gwinnett and Hall county line.
The $154 million deal between Birmingham-based Vulcan and Seattle-based Plum Creek will help ensure production at the four granite quarries for the next 25 years, the period Plum Creek plans to receive royalties from the operations.
Vulcan, which employs 653 workers in the state, said the deal allows it to unlock long-term value in the quarries while maintaining full ownership and operational control.
“This transaction provides us capital to deploy in strategic investments in our aggregates business and to strengthen our balance sheet,” Vulcan Chairman Donald James said in announcing the deal.
For Plum Creek, Georgia’s largest private landowner with about 750,000 acres in 89 counties, the deal allows it to increase its investments in construction material production as the economy continues to improve and building activity increases, according to Chief Executive Officer Rick Holley.
“These quarries are exceptionally well positioned for the recovery in the infrastructure, industrial and housing sectors in and around Atlanta,” Holley said in a statement on the deal. “We believe we are investing at the right time in the cycle.”
Plum Creek will receive a royalty interest in a small portion of the next 255 million tons of production at the four granite quarries, according to Vulcan spokeswoman Atisthan Roach.
Plum Creek’s primary business is the production of lumber, plywood, fiberboard and seedlings. The company, which has around 100 employees in Georgia, entered the state in 2001 when it merged with The Timber Co., formerly Georgia-Pacific Timberlands.
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