3
CONTACTS
Darin Good
Managing Director
303-549-5674
Crista Gilmore
Director
303-531-5013
Brian Krehbiel
Senior Vice President
970-215-9572
Dominic Cervi
Vice President
303-531-4605
April 2020www.capstoneheadwaters.com
In this quarterly report, provided exclusively for Rock Products, Capstone
Headwaters provides insight into mergers & acquisitions (M&A), capital markets
trends, aggregates production, and pricing through Q1 2020.
Capstone’s Building Products & Construction Services Team advises industry
business owners, entrepreneurs, executives, and investors in the areas of M&A,
capital raising, and various special situations advisory. Due to our extensive
background and laser focus within the industry, Capstone is uniquely qualified
and has an unparalleled track record of successfully representing Building
Products & Construction Services companies.
TABLE OF CONTENTS
Public Company Commentary
Aggregates Performance
M&A Overview
Private Equity Activity
Notable Transactions
Select Transactions
Company Spotlights
Construction Materials Update
Aggregate Materials
Firm Track Record
ROCK PRODUCTS
Q2 2020
Capstone Headwaters
*TEV = Total Enterprise Value (Market Capitalization + Net Debt)
Source: FactSet as of March 31, 2020
PUBLIC VALUATION COMMENTARY
Public Valuation Multiples
The coronavirus outbreak has substantially impacted valuations in Capstone’s
Aggregate Materials Index, with EBITDA multiples falling to an average of 8.1x, a
decline from 10.9x at the start of 2020.
U.S. Dollars in Millions EBITDA Enterprise Value/
Company Name TEV Revenue EBITDA Margin Revenue EBITDA
LafargeHolcim Ltd. $35,009 $27,384 $5,457 19.9% 1.3x 6.4x
CRH Plc $29,752 $28,126 $4,484 15.9% 1.1x 6.6x
HeidelbergCement AG $19,498 $19,984 $3,077 15.4% 1.0x 6.3x
Vulcan Materials Company $17,359 $4,929 $1,269 25.7% 3.5x 13.7x
Cemex SAB de CV $15,458 $13,513 $2,441 18.1% 1.1x 6.3x
Martin Marietta Materials, Inc. $15,148 $4,739 $1,257 26.5% 3.2x 12.1x
MDU Resources Group, Inc. $6,370 $5,337 $737 13.8% 1.2x 8.6x
Buzzi Unicem S.p.A. $4,117 $3,180 $628 19.7% 1.3x 6.6x
Eagle Materials Inc. $3,073 $1,420 $373 26.3% 2.2x 8.2x
Summit Materials, Inc. $3,346 $2,222 $433 19.5% 1.5x 7.7x
U.S. Concrete, Inc. $1,020 $1,479 $161 10.9% 0.7x 6.3x
Mean $13,650 $10,210 $1,847 19.3% 1.6x 8.1x
Median $15,148 $4,929 $1,257 19.5% 1.3x 6.6x
2
Rock Products | Q2 2020
M&A OVERVIEW
The impacts of the pandemic have yet to be fully realized in the Aggregates industry, although signs of disruption have
manifested in construction project delays, temporary plant closures, and potential workforce restrictions. Prior to the
outbreak, the Aggregates industry had benefited from heightened spending and a robust backlog of projects, which
reached 8.9 months in January, according to ABC.1 However, in an effort to protect workers, an estimated 50% of
construction sites across the country have been shut down, with the potential for this number to rise to 90%, according
to the International Union of Painters and Allied Trades.2 As governments and countries enter a lockdown phase to
mitigate exposure to the virus, construction activity has expectedly stalled, thwarting a robust streak of activity and
contractor confidence levels. The breadth of quantifiable metrics such as aggregates plant closures is difficult to
gauge at this stage, although HeidelbergCement (XTRA:HEI) cited three cement plant closures in Northern Italy.
However downtime for a plant is not an irrecoverable headwind for aggregates operators, especially those with a
presence across many geographies. The costs of shutting down and subsequently reengaging in aggregates
operations are not as drastic as other capital-intensive industries. “You cannot compare this with closing [a] full
automotive factory for four weeks,” commented Dominik von Achten, Chairman of the Managing Board and Chief
Digital Officer of HeidelbergCement in the company’s earnings call.3 While industries across the globe face mounting
uncertainly, aggregates operators expect healthy construction activity to resume in 2020 once there is a calming of the
virus’ effects.
Source: Capital IQ, PitchBook, FactSet, and Capstone Headwaters Research
Capstone’s Aggregates Materials Index (AMI) has historically been more volatile than the broader market and as such the
index’s returns have been significantly impacted by the disruptions brought by the pandemic. Through Q1 2020, the AMI
index has fallen 32.2%, declining further than the S&P 500 and Dow Jones Industrial Average.
AGGREGATES PERFORMANCE
DownAggregate Materials Index
32.2%
DownS&P 500
19.6%
DownDow Jones Industrial Average
23.2%
Total Return Comparison Q1 2020
M&A activity has remained steady through Q1 2020 with
25 transactions announced or completed. Total
disclosed deal value has amounted to nearly $288
million, outpacing the $250 million in value during the
same period in 2019. Strategic buyers have accounted
for nearly all transaction volume in 2020, with industry
operators typically comprising approximately 80% of
total consolidation activity (79.8% of transactions in
2019). Despite economic headwinds, active buyers have
continued to pursue aggregates operators with attractive
margin profiles in high-growth end markets through
Q1 2020.
Nu
mb
er
of
Tra
nsa
ctio
ns
37 35
2522
37
25
0
10
20
30
40
50
60
Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2019 Q1 2020
Transaction Volume: Aggregates
-50.0%
-40.0%
-30.0%
-20.0%
-10.0%
0.0%
10.0%
1/1/20 1/16/20 1/31/20 2/15/20 3/1/20 3/16/20 3/31/20
AMI Index S&P 500 Dow Jones Industrial Average
3
U.S. Concrete, Inc. acquires Coram Materials, Inc.
(February 2020, $142 Million)
U.S. Concrete (Nasdaq:USCR) has acquired Coram Materials, a premier provider of high-quality
sand and gravel products, for an enterprise value of $142 million. The transaction represents
approximately 7x EBITDA post synergies, which U.S. Concrete expects to achieve within two
years, according to a press release.4 Long Island-based Coram Materials owns and controls
~49.4 million tons of proven reserves with state-of-the-art excavation process infrastructure.5
“This acquisition possesses significant, premium sand reserves that will provide us with self-
sufficiency in meeting our sand supply needs to our ready-mixed concrete operations in New
York City as well as providing external sales to third party customers. Coram's 50 million tons
of reserves, located in the quickly depleting Long Island Sand market, increases the vertical
integration of our New York operations, strengthens our competitive position and advances the
continuation of our strategy of expanding into higher margin aggregates businesses,”
commented William J. Sandbrook, Chairman and CEO of U.S. Concrete in a press release.
Oldcastle APG, Inc. acquires US MIX Co.
(March 2020, Undisclosed)
Oldcastle APG, a subsidiary of CRH plc (ISE:CRG), has acquired leading dry mix
manufacturer, US MIX, for an undisclosed sum. Denver-based US MIX manufactures and
packages cementitious products including concrete mixes, sands, cements, grouts,
bonders, and mortars. It offers its products under the US SPEC brand which are formulated
and tested under American Society for Testing and Materials (ASTM) methods.
Oldcastle is a premier manufacturer of concrete building and hardscape products that operates
through 170 manufacturing facilities across the U.S. with over 6,000 employees. The acquisition
bolsters Oldcastle’s product portfolio and will gain significant materials science expertise. The
addition of US MIX also expands its geographic presence in the Denver, Colorado market and
enhances its manufacturing capabilities of its existing Sakrete, Amerimix, and the newly acquired
US SPEC brands.
Acquires
NOTABLE TRANSACTIONS
Acquires
PRIVATE EQUITY TRANSACTION ACTIVITY & VALUATIONS
GF Data Resources, a provider of detailed information on business transactions ranging in size from $10 to $250 million,
provides quarterly data from over 200 private equity firm contributors on the number of completed transactions. The
following chart provides the number of completed transactions from GF Data contributors, the average total enterprise value
(TEV)/EBITDA multiples, and the average amount of debt utilized in the transaction computed as a multiple of EBITDA. The
data, although not industry specific, displayed a moderate increase in transaction volume, with EBITDA multiples declining
slightly compared to the previous quarter. Total debt/EBITDA valuations remained steady at 4.0x, with a significant increase in
senior debt/EBITDA to 3.4x in Q4.
Private Equity Valuations & Leverage
Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019
# of Transactions 71 77 50 73 65 88 69 55 62
TEV/EBITDA 8.0x 6.9x 7.3x 7.1x 7.7x 6.8x 7.3x 7.5x 7.1x
Total Debt/EBITDA 4.3x 4.1x 3.8x 3.7x 3.7x 4.1x 3.9x 4.1x 4.0x
Senior Debt/EBITDA 3.4x 3.3x 3.2x 2.7x 2.9x 3.5x 3.2x 3.0x 3.4x
Source: GF Data®
Rock Products | Q2 2020
Coram Materials
Enterprise EV / LTM
Date Target Acquirer Target Business Description Value (mm) Revenue EBITDA
03/27/20 InstoneCapstone
Therapeutics
Distributes manufactured and natural stone veneer products.
- - -
03/17/20Strand-Tech
Manufacturing
Insteel Wire
Products
Manufactures fabricated wire products including concrete poles and building foundations.
$22.5 0.8x -
03/09/20Big Rock Natural
Stone SiteOne
Distributes stone products including boulders, slabs, bluestone, veneers, bulk stone, and pavers.
- - -
03/04/20Assets of Clio
HoldingsKC Solid Surfaces Provides granite countertop manufacturing. $1.2 - -
03/04/20Sealcoating
SuppliesGemSeal Distributes pavement preservation products. - - -
03/03/20 Rayner Equipment Etnyre Provides pavement maintenance solutions. - - -
03/02/20 Kleary MasonryCornerstone
Building BrandsManufactures and installs stone veneer. $40.0 1.0x -
03/02/20 US MIXOldcastle
APG
Manufactures concrete products including concrete mixes, sands, cements, and grouts.
- - -
02/28/20 WillcanSequatchie Concrete
ServiceDistributes and manufactures ready-mix concrete. - - -
02/25/20 Coram Materials U.S. Concrete Operates sand and gravel mining operations. $142.0 - ~7.0x
02/24/20Wall to Wall
Tile & StoneGinn Surfaces
Comprises granite and quartz production operations.
$6.9 - -
02/14/20Assets of Oldcastle
SpokaneKnife River
Comprises precast and prestressed concrete components business.
- - -
02/04/20Trowel Trades
SupplyGMS
Provides interior building materials including stone,
brick, masonry, and drywall.- - -
02/02/20 Geneva Pipe Northwest Pipe Manufactures concrete pipes and precast products. $49.4 1.1x -
01/15/20 Carstin Brands Wolf OrganizationProvides kitchen and bath products including marble
and granite countertops.- - -
01/06/20RidgeRock
Retaining Walls
Tysinger
AcquisitionsManufactures concrete blocks. - - -
01/02/20Wittkopf
Landscape SiteOne
Provides hardscape and landscape services and products including pavers and gravel.
- - -
12/12/19Cherry
IndustriesArcosa Offers natural and recycled sand and concrete. $298.0 1.7x 8.1x
12/12/19 Brooks Ready Mix Smyrna Ready Mix Distributes ready-mix concrete products. - - -
11/28/19Le Groupe
Bay-Val
Roxboro
Excavation
Manufactures aggregates, concrete, and other building material.
- - -
11/26/19Kosmos Cement
PlantEagle Materials
Comprises a cement plant, limestone quarry, an cement distribution terminals.
$665.0 - 12.1x
11/06/19Assets of Belden
BrickBrickworks
Comprises business operations related to soft mud bricks production.
$48.0 - -
11/06/19 Any Old StoneConstruction
ResourcesProduces and sells stone-made slabs. - - -
Source: Capital IQ, PitchBook, FactSet, and Capstone Research
SELECT TRANSACTIONS
4
Rock Products | Q2 2020
Eagle Materials (NYSE:EXP) recorded robust results in its
most recent fiscal quarter ending February 4, 2020 with
revenue increasing 5% compared to the same quarter in
the prior year, largely driven by higher cement sales
volume and prices, according to its earnings release.6
Eagle’s Heavy Materials segment, inclusive of cement,
concrete, and aggregates, experienced significant revenue
increases, exceeding $229 million. Operating earnings in
the Concrete and Aggregates segment alone rose to $3.3
million which marks a 222% increase compared to Q3 of
fiscal year 2019 while the company also posted record
concrete sales volume.
Prior to the pandemic, Eagle Materials cited strong
performance metrics and a favorable outlook for 2020.
“Notably, our Cement sales volume was up 7% to a record
1.4 million tons. Market demand for our Wallboard also
remained healthy, with shipments up 2%. Our operational
cost-control initiatives and continued strong operational
execution also contributed to the favorable third-quarter
performance. The outlook for calendar 2020 is positive.
We expect demand for our building materials and
construction products will continue to be supported by
several advantageous market dynamics, including
ongoing growth in jobs, high consumer confidence and
low interest rates,” commented Michael Haack, President
and CEO, in a press release.
Eagle Materials has continued to utilize inorganic growth
to bolster product offerings, scale, and expand its
geographic footprint. Notably, Eagle Materials’ acquired
Kosmos Cement Plant and seven distribution terminals
from Komos Cement Company, a joint venture between
CEMEX (NYSE:CV) and Buzzi Unicem (OTC:BZZFF) for an
enterprise value of $665 million and equivalent to 12.1x
EBITDA. The transaction is expected to increase annual
cement capacity by 25% and provide immediate
contribution to annual cash flow, according to Eagle
Materials’ earnings call.7
5
Ticker: NYSE:EXP
Headquarters: Dallas, Texas
Markets: Construction Materials
LTM Revenue: $1.4 Billion
Market Capitalization: $2.7 Billion
COMPANY SPOTLIGHT
Rock Products | Q2 2020
Historical EBITDACompany Description
Revenue Share by Segment
40.1%
33.2%
8.7%
6.3%
5.2%6.5%
Cement
Gypsum Wallboard
Concrete & Aggregates
Paperboard
Oil & Gas
Joint Venture
EB
ITD
A M
arg
in
EB
ITD
A (
$ in
millio
ns)
Source: FactSet
0%
5%
10%
15%
20%
25%
30%
35%
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
2013 2014 2015 2016 2017 2018 2019
EBITDA EBITDA Margin (%)
0%
5%
10%
15%
20%
25%
30%
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
2013 2014 2015 2016 2017 2018 2019
EBITDA EBITDA Margin (%)
6
Vulcan Materials (NYSE:VMC) experienced healthy growth
in 2019 with full year revenue reaching $4.9 billion, an
increase of 12% compared to the prior year, according to
its earnings release for the year ending December 31,
2019.8 Growth in shipments and improved pricing led to
an increase in the Aggregates segment with gross profit
rising 16% year-over-year. Vulcan is anticipating 2% to 4%
growth in aggregates shipments in 2020, contributing to a
forecasted double-digit growth in Aggregates segment
earnings, according to its earnings call.9 In addition, gross
profit in the Asphalt segment increased $4 million from the
prior year in Q4, benefiting from volume growth in
California, Vulcan Materials’ largest Asphalt market.
Notably, Vulcan Materials has traded at a premium
valuation compared to its industry peers through Q1 2020
at 13.7x EBITDA, well above the 8.1x average in Capstone’s
Aggregate Materials Index. Its concentration in high-
growth end markets, efficient allocation of costs, and solid
balance sheet has created a healthy backdrop for a
favorable margin profile.
Tom Hill, Chairman and CEO of Vulcan Materials
commented on industry dynamics prior to the disruption
brought by the coronavirus. “Looking ahead, demand in
our markets will continue to benefit from higher levels of
highway funding and continued growth in Residential and
Nonresidential markets. This visibility into demand
growth has already set the stage for solid price
improvement in 2020. Price improvement coupled with
our four strategic initiatives (Commercial and Operational
Excellence, Logistics Innovation and Strategic Sourcing)
should continue to increase unit profitability. For the full
year, we expect earnings from continuing operations
between $5.20 and $5.80 per diluted share with Adjusted
EBITDA between $1.385 and $1.485 billion.”
Ticker: NYSE:VMC
Headquarters: Birmingham, Alabama
Markets: Construction Materials
LTM Revenue: $4.9 Billion
Market Capitalization: $14.9 Billion
COMPANY SPOTLIGHT (CONTINUED)
Rock Products | Q2 2020
Historical EBITDACompany Description
Revenue Share by Segment
74.4%
17.4%
8.0%
0.2%
Aggregates
Asphalt
Concrete
Calcium
EB
ITD
A (
$ in
millio
ns)
Source: FactSet
EB
ITD
A M
arg
in
7
CONSTRUCTION MATERIALS UPDATE
Construction input prices decreased 0.6% in February from the previous month and have increased 0.4% year-over-year,
according to an Associated Builders and Contractors (ABC) analysis of data recently released by the U.S. Bureau of Labor
Statistics.10 Supply disruptions caused by the virus outbreak are likely to exacerbate pricing declines and potentially slow a
significant volume of construction projects.
Source: U.S. Bureau of Labor Statistics
Industry results in 2019 showed robust growth in production of several key aggregates compared to 2018. Notably, cement,
crushed stone, and sand & gravel all recorded year-over-year increases. In addition, aggregates pricing experienced solid
increases when compared to the prior year.
Source: U.S. Geological Survey and Capstone Headwaters Research
Cement
AGGREGATE MATERIALS
Rock Products | Q2 2020
-5.0%
-3.0%
-1.0%
1.0%
3.0%
5.0%
7.0%
9.0%
11.0%
Feb
-16
Ap
r-16
Jun
-16
Au
g-1
6
Oct
-16
Dec-
16
Feb
-17
Ap
r-17
Jun
-17
Au
g-1
7
Oct
-17
Dec-
17
Feb
-18
Ap
r-18
Jun
-18
Au
g-1
8
Oct
-18
Dec-
18
Feb
-19
Ap
r-19
Jun
-19
Au
g-1
9
Oct
-19
Dec-
19
Feb
-20
Figure 5: Producer Price Index
Percent Change Inputs to Construction Industries (February 2016 - February 2020)
One Month % Change 12 Month % Change
$85
$91
$97
$103
$109
$115
0
20
40
60
80
100
120
Pri
ce P
er
To
n
Millio
ns
of
To
ns
U.S. Cement Production
Cement Volume Cement Price
Portland cement consumption reached 94.2 million
metric tons through November of 2019, surpassing
2018 full year totals. December consumption figures
have not yet been reported.
The average net selling price per ton for Martin
Marietta and Eagle Materials in 2019 was $111.10, an
increase of 2.2% compared to 2018.
8
Ready-mix concrete (RMC) prices increased 2.2% in
2019 compared to the previous year. Price data is
computed from the average RMC net selling prices of
U.S. Concrete, Vulcan Materials, Martin Marietta, and
Eagle Materials.
Ready-mix concrete volume amounted to 346.4 million
cubic yards through November 2019. December
production figures have not yet been released.
Crushed stone production reached elevated levels in
2019 with 1,493 million metric tons produced and
shipped for consumption in the U.S. Production
volume increased nearly six percent when compared
year-over-year.
Crushed stone prices in 2019 increased three percent
year-over-year to $12.30 per metric ton, representing
the highest average selling value in the last five years.
Asphalt prices increased 3.5% in 2019 compared to the
prior year, as measured by the average net asphalt
selling prices of Vulcan Materials and Martin Marietta.
Asphalt prices declined 0.5% during Q4 2019 when
compared to the previous quarter.
Asphalt volume is reported on an annual basis and has
not been released.
Ready-Mix Concrete
Crushed Stone
Asphalt
Source: NRMCA Industry Data Survey, Average RMC selling price of U.S. Concrete, Vulcan Materials, Martin Marietta Materials, Eagle Materials, and Capstone Headwaters Research
Rock Products | Q2 2020
$9.5
$10.0
$10.5
$11.0
$11.5
$12.0
$12.5
$13.0
0
300
600
900
1,200
1,500P
rice
Per
To
n
Millio
ns
of
To
ns
U.S. Crushed Stone Production
Crushed Stone Volume Crushed Stone Price
Source: U.S. Geological Survey and Capstone Research
$34
$38
$42
$46
$50
$54
260
280
300
320
340
360
380
400
Pri
ce P
er
To
n
Millio
ns
of
To
ns
U.S. Asphalt Production
Asphalt Volume Asphalt Price
Source: NAPA Asphalt Pavement Industry Survey, Vulcan Materials, Martin MariettaMaterials average of net asphalt selling prices, and Capstone Research
$82
$90
$98
$106
$114
$122
40
90
140
190
240
290
340
390
Pri
ce P
er
Cu
bic
Yard
Millio
ns
of
Cu
bic
Yard
s
U.S. Ready-Mix Concrete Production
Ready-Mix Concrete Volume Ready-Mix Concrete Price
CITATIONS
1. Associated Builders and Contractors, “ABC’s Construction Backlog Indicator Rebounds in January,” https://www.abc.org/News-Media/News-
Releases/entryid/17037/abc-s-construction-backlog-indicator-rebounds-in-january, accessed March 23, 2020.
2. PR Newswire, “Construction Workers Speak Out: Fear Of Being Left Behind By Congress as COVID-19 Grinds Industry To A Halt,”
https://www.prnewswire.com/news-releases/construction-workers-speak-out-fear-of-being-left-behind-by-congress-as-covid-19-grinds-industry-
to-a-halt-301028293.html, accessed March 23, 2020.
3. HeidelbergCement “HeidelbergCement AG Earnings Call,” https://www.heidelbergcement.com/en/investor-relations, accessed March 23, 2020.
4. U.S. Concrete, “U.S. Concrete Reports Strategic Acquisition And 2019 Full Year and Fourth Quarter Results,” http://investorrelations.us-
concrete.com/news-releases/news-release-details/us-concrete-reports-strategic-acquisition-and-2019-full-year-and, accessed March 20, 2020.
5. U.S. Concrete, “Q4 2019 Results Overview,” http://investorrelations.us-concrete.com/financial-information/quarterly-results, accessed March 20,
2020.
6. Eagle Materials, “Eagle Materials Reports Third Quarter Results,” http://ir.eaglematerials.com/news-releases/news-release-details/eagle-materials-
reports-third-quarter-results-1, accessed March 20, 2020.
7. Eagle Materials, “Q3 2020 Eagle Materials Earnings Conference Call,” http://ir.eaglematerials.com/investor-relations, accessed March 20, 2020.
8. Vulcan Materials, “Vulcan Reports Fourth Quarter and Full Year Results,” https://ir.vulcanmaterials.com/investor-relations/news-releases/news-
details/2020/Vulcan-Reports-Fourth-Quarter-and-Full-Year-Results/default.aspx, accessed March 20, 2020.
9. Vulcan Materials, “Vulcan Materials 4Q 2019 Earnings Conference Call,”
https://event.webcasts.com/starthere.jsp?ei=1283617&tp_key=76ebd07607&LanguageId=1, accessed March 20, 2020.
10. Associated Builders and Contractors, “Monthly Construction Input Prices Drop in February, Says ABC,” https://www.abc.org/News-Media/News-Releases/entryid/17020/monthly-construction-input-prices-drop-in-february-says-abc, accessed March 23, 2020.
Disclosure: This report is a periodic compilation of certain economic and corporate information, as well as completed and announced merger and acquisi-
tion activity. Information contained in this report should not be construed as a recommendation to sell or buy any security. Any reference to or omission of
any reference to any company in this report should not be construed as a recommendation to buy, sell or take any other action with respect to any security of
any such company. We are not soliciting any action with respect to any security or company based on this report. The report is published solely for the
general information of clients and friends of Capstone Headwaters. It does not take into account the particular investment objectives, financial situation or
needs of individual recipients. Certain transactions, including those involving early-stage companies, give rise to substantial risk and are not suitable for all
investors. This report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not be relied
upon as such. Prediction of future events is inherently subject to both known and unknown risks and other factors that may cause actual results to vary
materially. We are under no obligation to update the information contained in this report. Opinions expressed are our present opinions only and are subject
to change without notice. Additional information is available upon request. The companies mentioned in this report may be clients of Capstone Headwaters.
The decisions to include any company in this report is unrelated in all respects to any service that Capstone Headwaters may provide to such company. This
report may not be copied or reproduced in any form, or redistributed without the prior written consent of Capstone Headwaters. The information contained
herein should not be construed as legal advice.
9
Rock Products | Q2 2020
An estimated 969 million metric tons of sand & gravel
were produced and shipped for consumption in 2019,
an increase of 0.8% year-over-year.
Following historic highs in production in Q3 2019,
production levels declined in Q4 to 230 million metric
tons, falling slightly when compared to the 240 million
metric tons produced in Q4 of 2018.
Sand & gravel prices increased to $9.29 per metric ton,
an increase of 3.9% year-over-year and the highest
average price in the last five years.
Sand & Gravel
Source: U.S. Geological Survey and Capstone Research
$7.0
$7.4
$7.8
$8.2
$8.6
$9.0
$9.4
0
200
400
600
800
1,000
Pri
ce P
er
To
n
U.S. Sand & Gravel Production
Sand & Gravel Volume Sand & Gravel Price
Millio
ns
of
To
ns
ROCK PRODUCTS REPORT CONTRIBUTORS
10
Crista started her career at KPMG LLP where she audited a wide range of businesses from small non-profit to large Fortune 100 companies. Crista then accepted a Senior Associate role with a $12 billionmulti-strategy hedge fund managing the monthly PnL close process for several funds. She waspromoted to Vice President, Valuations responsible for pricing the portfolio of over 8,000 securitiesmonthly, as well as reporting to the Valuation Committee on a bi-monthly basis.
At Capstone Headwaters, Crista works with clients to improve their financial metrics and reportingcapabilities. Additionally, she performs research, valuation analysis, prepares marketingdocumentation, manages client data rooms and responds to due diligence inquiries.
Crista graduated summa cum laude from Drake University with a degree in Finance and Accounting.She also earned a Master’s of Accounting degree from Drake University and is a CFA Charterholder.
Darin is a recognized expert witness and speaks nationally regarding merger and acquisitions. Courts
and clients appreciate his ability to synthesize large amounts of complex business information and
present it in concise terms that are clearly understood by all parties. Trade groups and national
publications have recognized Darin’s business acumen and technical knowledge.
Prior to joining Capstone Headwaters, Darin started, operated, made acquisitions and sold three
successful companies in construction, import and distribution, and commercial real estate
management. Over a two year period, he implemented the turnaround of the underperforming
business units of a publicly held national franchisor.
Two sell side transactions that Darin performed are published and taught in business schools around
the globe. Darin teaches these cases at the University of Denver, where he received his Bachelor of
Science in Finance.
Crista Gilmore
Director
[email protected] | 303-531-5013
Darin Good
Managing Director
[email protected] | 303-549-5674
Rock Products | Q2 2020
Prior to joining Capstone Headwaters in 2011, Brian spent five years with a boutique investment bank
performing sell-side transactions, financial modeling and value-add client services. At Capstone
Headwaters, Brian is a member of the Building Products & Construction Services team assisting clients
with sell-side, buy-side and debt and equity raise transactions.
Prior to his career in Investment Banking, Brian developed construction industry and operations
experience owning and managing a successful family-owned residential construction company. His
education and industry expertise are resources used in all aspects of the transaction process.
Brian graduated from the University of Northern Colorado with a BS degree in Finance and he is a CFA
Charterholder.
Brian Krehbiel
Senior Vice President
[email protected] | 970-215-9572
Connor McLeod
Research Associate
[email protected] | 617-619-3319
Connor is a Research Associate at Capstone Headwaters primarily specializing in Building Products &
Construction Services, Healthcare, Business Services, and Cybersecurity. Prior to joining Capstone
Headwaters, Connor was a specialist with the Investor Services team at BlackRock where he worked
with mutual funds, closed end funds, and exchange traded funds and communicated fund
performance, relevant market dynamics, and facilitated trades for shareholders, financial advisors, and
institutional clients. Connor holds a BA in Economics from Bates College and is a Series 7 Registered
Securities Representative.
ROCK PRODUCTS REPORT CONTRIBUTORS
11
Dominic has spent the entirety of his investment banking career with Capstone Headwaters, primarily
focusing on sell-side M&A. In addition to 2017’s Cross Border Deal of the Year, Dominic has executed
deals ranging from $30mm to $200mm across a wide-range of industries, including Industrial
Manufacturing, Transportation & Logistics, TMT and Healthcare & Life Sciences. Dominic’s current
focus is representing Building Products and Construction Services-related businesses with financial
and operational analysis, process material creation, market research and data room management.
Dominic also teaches for the Colorado Bar Association, lecturing all Colorado lawyers on the current
state of the M&A market.
Prior to joining Capstone Headwaters, Dominic was a professional soccer player with the United States
Soccer Federation, including as a member of the 2008 Beijing Olympic Games, and the Celtic Football
Club. Dominic graduated Cum Laude from the University of Denver with a degree in Finance and
Accounting.
Dominic Cervi
Vice President
[email protected] | 303-531-4605
SELECT CAPSTONE HEADWATERS BUILDING PRODUCTS & CONSTRUCTION SERVICES TRANSACTIONS
has been acquired by
a portfolio company of
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management buyout
supported by
a portfolio company of
has been acquired by
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has been acquired by
has recapitalized with has been acquired by
has been
recapitalized by
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has partnered with
Rock Products | Q2 2020
12
www.capstoneheadwaters.com
Capstone Headwaters is an elite investment banking firm dedicated to serving the corporate finance needs of middle market
business owners, investors and creditors. Capstone Headwaters provides merger & acquisition, private placement, corporate
restructuring and financial advisory services across 16 industry verticals to meet the life cycle needs of emerging enterprises.
Headquartered in Boston, MA and Denver, CO, Capstone Headwaters has 19 offices in the US, UK and Brazil with a global
reach that includes over 450 professionals in 40 countries.
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