Calgary, Alberta--(Newsfile Corp. - May 9, 2024) - BURNCO Rock Products Ltd. ("BURNCO"), an aggregate construction materials company with operations in Canada and the United States, today announced it has entered into a Share Purchase Agreement with Brookfield Business Partners, the flagship listed vehicle of Brookfield Asset Management's Private Equity Group, to acquire Hammerstone Infrastructure Materials Ltd. ("Hammerstone").
The transaction advances BURNCO's growth strategy and complements its existing business in Alberta with a major limestone production business and vast leasehold interests in a highly valued market in Northern Alberta.
Located north of Fort McMurray, the Hammerstone Quarry is one of the largest limestone quarries in Western Canada with over 750 million tonnes of aggregate reserves, representing generations of supply. The quarry's output of limestone aggregates is essential to the operational sustainability of its customers. Hammerstone employs 110 people.
"The Hammerstone business is a natural fit within our broader aggregates position in Alberta and expands our geographic and operational footprint in the province," said Tom Zais, Chief Executive Officer of BURNCO. "The leadership group and employees at Hammerstone are focused on the operating values of safety, environmental stewardship and community engagement, which are all consistent with our commitment to people, customers and communities. We look forward to working with the Hammerstone team to further expand BURNCO's business in Alberta."
The Hammerstone limestone quarry is located north of Fort McMurray and serves Alberta’s oil sands industry.
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The addition of the Hammerstone's quarry adds quality long-term aggregate reserves to BURNCO's existing industry-leading materials position in Western Canada. Further developing the reserves at the quarry will serve Canada's world-class energy industry. Hammerstone has developed strong relationships with customers in Fort McMurray as well as with Indigenous groups and communities in the region which BURNCO is looking forward to support and strengthen.
"As fourth generation owners of BURNCO, our family is thrilled to be investing again in Canada," noted Scott Burns, the company's Executive Chairman.
Zais added, "BURNCO has a proud legacy of performance as the company has operated in Alberta since 1912. Adding the Hammerstone operation extends BURNCO into valuable new geography in the province and provides us with another long-term, legacy-building asset with the quarry and its reserves. Hammerstone will be a key operation for us, and we see a long runway of opportunity for the business and new employee group."
Nick Laganiere, President and CEO of Hammerstone, said, "Hammerstone's leadership group and employees are extremely pleased to be joining BURNCO. The acquisition is a great outcome for our operation. BURNCO knows our business, understands what we have built in the Fort McMurray area over the past 15 years, and plans to support and fund future business opportunities with us."
The closing of the transaction is subject to receipt of approvals under the Competition Act of Canada and other customary closing conditions. It is expected to occur in the next 30 days.
About BURNCO
BURNCO Rock Products Ltd is a family business established in Calgary in 1912 by James F. Burns. The company has operations in Alberta, British Columbia, Saskatchewan, Texas and Colorado. BURNCO produces high-quality aggregate, paving asphalt and ready-mix concrete for its valued customers. For a complete list of locations and to learn more, please visit www.burnco.com.
About Hammerstone
Hammerstone Infrastructure Materials Ltd. owns and operates a limestone quarry with over 750 million tonnes of readily accessible limestone reserves in the heart of Northern Alberta's mineable oil sands. It is uniquely positioned to provide a local, secure, year-round and long-term source of limestone aggregate to all nearby projects. Visit www.hammerstone.ca for information.
For more information
General Inquiries:
Tom Zais, CEO, BURNCO, 403 255 2600, communications@burnco.com
Media Inquiries:
Stephen Lewis, SWL Communications, 403 472 6574, stephen@swlconsulting.ca
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/208532
