U.S. Concrete, Inc.

Abstract

Theresa Alvarez is about to become president of the company her father started, Cordoba Materials, which had initially focused on production and sales within the concrete and aggregates industry, and had grown into a major regional player, with 22 plants and $105 million in annual revenue. One aspect critical to Alvarez's transition is an agreement between her and her father on what her long-term vision for growing Cordoba Materials would be. Would it grow through acquisition or organically? How would it finance its growth? As preparation for these conversations, both Alvarez and her father agreed that an evaluation of the state of the would be in order—that is, a review of what approaches other successful players in the industry were taking to grow their businesses. Alvarez is particularly interested in one business that stands out for its similarities to Cordoba Materials: U.S. Concrete, Inc. (U.S. Concrete). She is intrigued by two varied signals she received from her initial research. On one hand, she admires the rapid vertical expansion of the company's business and the new technology it is applying to its concrete production. Should she follow a similar strategy and search for smaller companies to buy in the region? Or should she be concerned about Cordoba Materials itself being a U.S. Concrete takeover target? This case explores the U.S. concrete and aggregates industry generally and U.S. Concrete's performance specifically, including stock prices, competitor comparisons, certification programs available in the concrete and aggregates field, balance and income statements, and more. Excerpt UVA-C-2431 Dec. 18, 2019 U.S. Concrete, Inc. Our business strategies are (1) market focus, including growing our markets through acquisitions, (2) vertically integrate through aggregates, (3) do what we know, and (4) focus on growing profits. —William J. Sandbrook, U.S. Concrete chairman and CEO (2018) Theresa Alvarez would have some bold decisions to make. She would soon become president of Cordoba Materials, based in Norton, Oklahoma. Her father had built and managed the company since its formation in 1989. He was set to retire by the end of 2020. Cordoba Materials initially focused on production and sales of aggregates, gradually building a ready-mixed business that specialized in serving small businesses. It was now a significant regional player, with 22 plants and $ 105 million in annual revenue. . . .