Shares of U.S. Concrete Inc. surged 13.1% in premarket trading Monday, after the aggregates and concrete supplier announced an agreement to be acquired by Vulcan Materials Co. in a deal valued at $1.29 billion. Vulcan’s stock was still inactive. Under terms of the deal, U.S. Concrete shareholders will receive $74 in cash for each U.S. Concrete share they own, which is 29.5% above Friday’s closing price of $57.14, and implies a market capitalization of $1.26 billion. U.S. Concrete’s stock had not closed at $74 or higher since February 2018. Vulcan expects the deal to add to earnings per share in the first full year after closing, which is expected to occur in the second half of 2021. “U.S. Concrete is an important Vulcan customer in a number of key areas, and this transaction is a logical and exciting step in our growth strategy as we further bolster our geographic footprint,” said Vulcan Chief Executive Tom Hill. Shares of U.S. Concrete have run up 43.0% year to date through Friday and Vulcan Materials have climbed 21.1%, while the S&P 500 has advanced 12.6%.

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