OTCPK:PILBF - Post by User
Post by
seatleslimon Sep 02, 2017 11:05am
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Post# 26650464
USCR
USCRI can't say I'm not happy about Vulcan deal, but strange that it came together so quietly. USCR's core business plan focuses on vertical integration and controlling raw material costs.
Once this deal closes, Polaris's reserves are essentially off the market forever. USCR owns no aggregates in the Bay area and it splits 80 or 90% of the market with Cemex. Further, Vulcan will have huge market share if this deal closes.
At $200M USD, Polaris is very close to penciling out for USCR. Probably no more than 11X pro forma forward 12 mos ebitda; pro forma meaning mainly what USCR could generate as the owner. They are telgraphing acquisitions. Are they really able to do much better than 10-11X ebitda on a deal in this environment?
They have zero chance of securing any meaningful local aggregate supply. The Bay area is 1/4 to 1/3 of their business. Probably wishful thinking, but thought they woud fight for the property at that price, though maybe they believe they will always be outbid in the end.