Blackstone’s Julia Kahr at the Summit

In 2009, Blackstone, the New York-based alternative investment and financial services company, committed to investing up to $ 750 million in Summit Materials, a startup in the aggregates sector (i.e., building materials such as crushed stone , sand, gravel, cement). , asphalt and ready-mixed concrete). Summit intended to implement a consolidation strategy by consolidating smaller companies that were acquired at relatively low multiples into an integrated company that traded at a higher exit multiple and had a higher Total Enterprise Value (VET) than the sum of the parts acquired. The case study was scheduled for 2012 when Summit did not go as well as predicted after allocating $ 483 million in capital for acquisitions. Blackstone’s investment committee gave then-Blackstone CEO Julia Kahr, along with Summit CEO Tom Hill and the business team, a month to present a recommendation for the future of the investment. In this case, Kahr is faced with the decision to recommend the following: 1) Continue with the consolidation strategy and finance additional Summit acquisitions; 2) Suspend the consolidated strategy to invest in operations, update the management team, improve due diligence and underwriting processes and improve the financial and IT systems while the market is expected to rebound; or 3) exit the investment.

We don‘t have the case solution, but we pay up to $50 for yours!

• Set a reminder to receive an email after your university‘s case study deadline.
• Upload your case study solution. We will review it for quality.
• Get your money via PayPal or to your bank account.