Forward-looking statements include statements about Arcosa’s estimates, expectations, beliefs, intentions or strategies for the future. For more information, visit Some statements in this release, which are not historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. ![]() Arcosa reports its financial results in three principal business segments: the Construction Products Group, the Energy Equipment Group, and the Transportation Products Group. (NYSE:ACA), headquartered in Dallas, Texas, is a provider of infrastructure-related products and solutions with leading positions in construction, energy, and transportation markets. Kirkland & Ellis LLP acted as legal advisor to Arcosa.Īrcosa, Inc. We plan to provide additional commentary on the acquisition during our third quarter earnings call on October 29, 2020. Pro-forma after the transaction, the Company had net debt/Adjusted EBITDA of ~0.6x as of June 30, 2020.Īrcosa now operates a total of 40 natural aggregates, recycled aggregates, and specialty materials plants in Texas, a state with healthy population growth, strong fiscal health, and a robust public infrastructure program.įor supplemental information on the transaction, please refer to materials located on our website at. The Company funded the approximately $87 million purchase price with cash on-hand and continues to have low leverage and ample liquidity to pursue its disciplined growth strategy. We are enthusiastic about welcoming the Strata team to Arcosa.” “Overall, Strata is an excellent strategic fit as we continue to reposition our company around core infrastructure products. Strata’s margins are similar to Cherry’s recycled aggregates margins, and should be accretive to our overall Construction Products Group margin. ![]() “By leveraging our Cherry team’s operational and commercial expertise in recycled aggregates, and our long-standing relationships with DFW customers, we expect to drive incremental growth. We believe that this model will have increasing value as the construction industry seeks to reduce transportation costs and its carbon footprint by using both recycled and natural aggregates. Strata’s strategic network will allow us to serve customers with a complementary product offering that includes both recycled and natural aggregates. Strata produced more than 2 million tons of aggregates in the last 12 months.Ĭommenting on the transaction, Antonio Carrillo, Arcosa’s President and CEO, noted, “Building on the Cherry acquisition we completed in January 2020, we are excited to replicate this model in the Dallas-Ft. Strata had trailing 12 month Adjusted EBITDA of approximately $10.2 million as of August 31, 2020, implying an ~8.5x EBITDA multiple. Worth area, with 5 recycled aggregates locations and 1 natural aggregates plant. Strata is a leading provider of recycled aggregates in the Dallas-Ft. ![]() (NYSE: ACA) (“Arcosa” or the “Company”), a provider of infrastructure-related products and solutions, today announced that it has acquired Strata Materials (“Strata”) for approximately $87 million. – Advances Arcosa’s Overall Portfolio Shift into Construction Products at an Attractive ValuationĪrcosa, Inc. – Increases Exposure to Growing Product Category Driven By ESG and Economic Benefits – Replicates January 2020 Acquisition of Cherry Companies with Complementary Recycled and Natural Aggregates – $87 Million Acquisition Expands Recycled Aggregates Platform into Dallas-Ft.
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