Continental Materials Corporation (NYSE: CUO) is a US-based public holding company with subsidiaries operating across a variety of industries. Shares jumped 27.43% on Friday, February 1, 2019. Over the past three months, Continental Materials has seen an average daily volume of 1,740 shares. However, on Friday, 25,376 shares traded hands, equating to $482,100 in dollar volume.
Shares surged Friday after Continental Materials announced the sale of the assets of its subsidiary, Transit Mix Concrete, to Aggregate Industries, a subsidiary of LafargeHolcim Ltd. (OTC Pink: HCMLY). Aggregate Industries will acquire “the ready-mix plant operations in Colorado Springs and Pueblo, Colorado and the Daniels sand pit in Colorado Springs, Colorado.” In exchange, Continental Materials will receive a payment of $27 million. Jim Gidwitz, Chairman of Continental Materials, commented, “With the proceeds from the sale Continental Materials will look to invest in US-based manufacturing businesses with a long term outlook.” Here is the full press release detailing the transaction:
Continental Materials Corporation Press Release:
CHICAGO, Feb. 01, 2019 (GLOBE NEWSWIRE) — Continental Materials Corporation today announces the sale of substantially all the assets of Transit Mix Concrete, a leading supplier of building materials in Colorado to Aggregate Industries – WCR, a subsidiary of LafargeHolcim, for approximately $27 million.
The transaction includes the ready-mix plant operations in Colorado Springs and Pueblo, Colorado and the Daniels sand pit in Colorado Springs, Colorado.
“We are pleased to find a supportive new partner for Transit Mix, who will invest and grow the ready-mix and sand operations in Southern Colorado and retain over 180 skilled and experienced employees. Since Continental Materials acquired Transit Mix in 1955, it has overseen steady growth through long term investment, from a single operation to the current business with $60m revenue and several locations along the Southern Front Range,” said Jim Gidwitz, Chairman of Continental Materials. “With the proceeds from the sale Continental Materials will look to invest in US based manufacturing businesses with a long term outlook.”
Continental Materials is retaining its building supply and aggregates businesses in Colorado, which will be rebranded as Castle Rebar and Supply and Castle Concrete Aggregates, respectively.
About Continental Materials Corporation
Continental Materials Corporation (NYSE American: CUO) is a public holding company with subsidiaries in industrial and residential heating and cooling manufacturing, commercial door distribution and manufacturing and aggregates mining and processing. Headquartered in Chicago, IL, Continental Materials Corporation employs approximately 420 employees across the US.
Article By: Andrew Rego
