What happened Shares of concrete and construction materials company U.S. Concrete (NASDAQ: USCR) shot higher Monday after it announced it was being acquired by Vulcan Materials (NYSE: VMC) for $74 per share in cash -- a 30% premium over Friday's closing price. Shares immediately jumped to about that level, and remained up by 29% as of 11:30 a.m. EDT. So what The purchase by its larger peer and supplier represents an equity value of almost $1.3 billion. The transaction, which has been approved by both boards of directors, is expected to close in the second half of the year. Demand for construction materials has been strong as the recovery progresses, with building activity accelerating in areas like data centers and warehouses. Image source: Getty Images. Now what In its recently delivered first-quarter report, U.S. Concrete President and CEO Ronnie Pruitt stated: "We are optimistic about the business outlook, as we see improved demand for our products with strong residential activity, diversified commercial needs and resilient infrastructure projects, which should be enhanced by a national infrastructure bill." Based in Texas, with 27 aggregates operations focused on California, Texas, and the Northeast, U.S Concrete's assets will complement Vulcan's existing business in some areas. It will also expand its presence in key growth areas of Texas, New York, and New Jersey. Vulcan has told investors it is taking an approach to adding value that includes organic investments, acquisitions, and greenfield developments. In a statement on the acquisition, Vulcan Chairman and CEO Tom Hill said, "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." 10 stocks we like better than US ConcreteWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and US Concrete wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of May 11, 2021 Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source