Blackstone Capital Partners – along with private equity firm Silverhawk Capital Partners and former BHP Billiton chief executive Charles “Chip” Goodyear – will invest up to $780 million in Washington, DC-headquartered Summit Materials.
A statement from the firms did not provide details as to how much each party has agreed to invest.
Led by chief executive Tom Hill, the “heavy-side building materials” company was founded in early 2009 and has recently made its first acquisition with the purchase of Kansas-based Hamm, a privately held aggregates, landfill, asphalt and construction company.
Hamm, which has 250 employees, will be Summit’s platform for growth in the Midwest region of the US, the firms said in a statement. Financing for the deal, terms of which were undisclosed, came from Bank of America.
This is Blackstone's second US deal this year, having in May joined with The Carlyle Group, Centerbridge Partners, WL Ross and The Wellcome Trust on the $900 million rescue of failed Florida-based bank BankUnited.
Founded in 2005, Silverhawk is focused on the manufacturing, natural resources and business services sectors. It is investing its $145 million debut fund.
Goodyear, meanwhile, recently captured headlines for opting out of the private investment arena; in July, plans were cancelled for him to assume the CEO role at Singaporean sovereign wealth fund Temasek. The sovereign fund cited differences over “certain strategic issues that could not be resolved”.