After at least six months of discussions, Votorantim Cement North America (VCNA) announced in February closing on an asset deal involving of one of the industry's largest independent ready mixed operators, Bridgeview, Ill.-based Prairie Material Sales Inc. The transaction spans 81 ready mixed concrete plants (Illinois, Indiana, Michigan, Wisconsin), 17 aggregate operations (Illinois, Indiana), and related hauling assets; collectively, they reported sales of about $450 million in 2007 and have a payroll upwards of 1,800. The concrete plants are strategic to the buyer's flagship business, Toronto-based St. Marys Cement. Through six cement mills and grinding operations in Ontario, Michigan, Wisconsin and Illinois, St. Marys feeds a network of 12 Great Lakes terminals serving markets anchored by Milwaukee, Chicago, Detroit, Cleveland, and Buffalo, N.Y.

Chicago market-leading Prairie Material Sales will maintain its identity, as will satellite businesses in Wisconsin, Indiana, and Michigan. VCNA has retained Prairie Material's management team, including Will Glusac, who was appointed president in late-2006 after serving in the same capacity with the Rinker/Florida Materials Division. Terms of the transaction were not disclosed and do not include Prairie Group's other principal business, Illinois Brick Co. A key masonry dealer with 12 northern and central Illinois yards and showrooms, including a headquarters in the Chicago suburb of Palos Heights, it remains under Oremus family members, Prairie Group principals.

VCNA officials view the Prairie Material Sales asset acquisition as an important component of their strategy to expand and further integrate a Great Lakes region business platform. By staff estimates, the Prairie properties position the Toronto-based buyer as a top 10 U.S. ready mixed producer, with annual output approaching 6 million yd. That estimated volume includes Prairie shipments, plus those of another recent VCNA target, Prestige Group (Florida, the Carolinas, California), and Jacksonville, Fla.-based Trinity Materials. VCNA is a partner in the latter company and Suwannee American Cement with Jacksonville road-builder Anderson Columbia Construction.

VCNA is part of Sao Paulo-based Votorantim Cementos, operating within one of Brazil's largest industrial conglomerates, Votorantim Group. A major construction materials player on its home turf, Votorantim Cementos gained a northern foothold in 2001 through Blue Circle Canada cement, ready mixed, aggregate and concrete products businesses. Lafarge Group shed those properties under regulatory terms covering its acquisition of Blue Circle Industries, London, and Blue Circle America, Atlanta.

VCNA resurrected the original St. Marys Cement and Canada Building Materials brands. In 2005, VCNA extended its Great Lakes presence by acquiring from Cemex USA two cement mills and related assets. Cemex had picked up one of those mills, Illinois' Dixon-Marquette Cement, from Prairie Group in 2003. Concurrent with the Great Lakes platform development, VCNA joined Anderson Columbia as a partner in the Suwannee America plant, opened in 2003, and downstream businesses.

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