Vulcan International

Vulcan International, Inc. Vulcan International is a chemicals (40%) and structure materials (60%) company. Due to the high balance of transportation costs relative to product value the verbalism materials industry is highly fragmented, consisting largely of local firms. At the rhythm of the occurrences narrated in this case, Vulcan was the largest construction materials company in the US, controlling surface 20% of the market. As of 2007, it had sales of $3.0 billion with around 11,000 employees. assent to company information, Vulcan Owns 334 aggregate production and related facilities serving 22 states, the District of Columbia, the Bahamas and Mexico. Owns 183 st 1 quarries, 51 moxie and gravel plants, 84 sales yards, 47 mineral pitch plants, and 131 ready-mixed concrete facilities. Produces unkept stone, sand and gravel, and other construction aggregates. Is one of the top 5 producers of asphalt and a leading producer of ready-mixed concrete. In 20 04 Vulcan acquired at auction off for $91 million the Whites Uvalde Mines Company which have major mining interests in the Uvalde County thrill Asphalt kingdom an area of approximately 75,000 to 100,000 acres containing the only marketable thrill asphalt in Texas. Whites Uvalde Mines Company consisted of quadruplet rock quarries, four rock asphalt quarries, one truck company and one specialty asphalt quarry.

The acquisition was enter as follows: Rock AsphaltOther sum (In million dollars) Working detonating device $ 2 $ 5 $ 7 Property, plant & Equipment 18 20 38 Land, Mineral res erves 26 5 31 Goodwill 5 ! 10 15 Total$ 51$ 40 $ 91 To arrive at the above valuations Vulcan use the pass judgment discounted cash flows (12% discount rate) from the various components of the saucily acquired operation. At the time of the acquisition Texas was experiencing a housing complete and it was expected that Texas economy would continue...If you want to get a adequate essay, enounce it on our website: BestEssayCheap.com

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