Welcome to Episode 11 of the Preferred Shares Podcast.

In this episode—the second part in our series on the beneficiaries of the spending on the interstate highway system of the United States—Preferred Shares explores the aggregates industry. In particular, we go over the early history of Birmingham Slag, the family-owned business that evolved into Vulcan Materials Company (VMC).

In this episode

Interstate Highway System background refresher

The unique qualities of the aggregates industry

Early Vulcan Materials history

Role of inheritance tax in driving industry consolidation

State of the industry today: does a focus on aggregates drive premium valuations?

Henry Crown, founder of Material Service Corp.

How two large aggregates businesses were acquired by two defense contractors

Devin’s case study on FRP Holdings

Wrapping up on key takeaways

Episode Resources

Cruikshank, George M. A History of Birmingham and its Environs. Lewis Publishing, 1920.

“Shipped Over Million Tons of Slag in 1923”, The Dixie Manufacturer, January 25, 1924.

“Crush Million Tons of Stone For T.V.A.”, Rock Products, December 1941.

“Slag Firm In Merger”, Rock Products, November 1956.

“Invasion From the Deep South”, Business Week, Feb. 14, 1959.

“Vulcan Materials acquires three N. C. quarries”, Rock Products, April 1959.

“The Clans of Vulcan”, Fortune, January 1960.

“Martin, Marietta Agree to Merger”, New York Times, June 24, 1961.

“Materials in Use in U.S. Interstate Highways”, US Geological Survey, 2006.

A History Written in Stone. Vulcan Materials Company, 2008.

Additional Reading

Curious to see what else we’ve been working on? Below are some pieces we’ve written independently that we think you’d like:

Rock Pile Riches, Lawrence Hamtil, 2/02/2024

The Pits, Devin LaSarre, 1/8/2023

Disclaimer

All opinions expressed by Preferred Shares hosts and guests are solely their own opinions and do not reflect the opinions of their respective employers. This podcast is for informational and entertainment purposes only and should not be relied upon as a basis for investment decisions. None of the information contained in the podcast or this web site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person.

Clients of Andvari and Fortune Financial may maintain positions in the securities discussed in this podcast. Furthermore, from time to time, the Hosts may hold positions or other interests in securities mentioned in the Podcast and may trade for their own accounts based on the information presented. The Hosts may also take positions inconsistent with the views expressed in its messages on the Podcast.

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