Summit Materials, a building materials company established by a group including The Blackstone Group and Silverhawk Capital Partners to develop a leading heavy-side building materials business through acquisitions, has acquired Cornejo & Sons, a producer of sand and gravel, asphalt and ready-mix concrete. The acquisition is Summit's third since its inception in 2009. The platform previously added on Hamm in September 2009 and Hinkle Contracting earlier this year in February.
Private equity firms are turning increasingly to add-ons as a primary source of growth for their portfolio companies. The first quarter's 99 add-on deals made up almost a third of the total deal flow during the quarter, according to the PitchBook Platform. This was a sharp increase from the 22.7% of deal flow that add-ons accounted for in the fourth quarter of last year. The investors with the most acquisitive portfolios during the quarter were The Blackstone Group, Audax Group and Metalmark Capital.