SUM - Why Summit Materials Stock Jumped on Thursday
2023-10-19 13:08:14 ET
Shares of Summit Materials (NYSE: SUM) were up 8% as of 11:30 a.m. ET on Thursday after the construction materials provider filed a preliminary statement with the Securities and Exchange Commission regarding its planned acquisition of the equity interests of Argos USA, including Cementos Argos .
Summit said it will finance the transaction with $1.2 billion in cash and 54.7 million shares of Summit stock. Following the transaction, Summit shareholders will own approximately 69% of Summit, with Cementos Argos owning the balance.
Summit shares are up 21% year to date, but this acquisition could be a major growth catalyst once the deal closes sometime in the first half of 2024.
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Why Summit Materials Stock Jumped on Thursday