Sources: Arcosa Inc., Dallas; CP staff
Expanded shale and clay lightweight aggregate leader Arcosa is poised to become the top player in recycled concrete material through a $296 million deal for Cherry Industries Inc., whose unique platform of mines and processing facilities spans the Houston metro area. In addition to transportation, commercial and industrial building, plus housing markets, Cherry provides concrete demolition services, primarily to secure raw material for recycled aggregates. Its 12 locations will join Arcosa’s 19 active aggregate and specialty materials locations in the Lone Star State.
“The transaction accelerat[es] the growth of our high-value Construction Products segment,” says Arcosa CEO Antonio Carrillo. “Cherry’s unique platform will provide additional organic and acquisition growth opportunities in Houston and adjacent markets in Texas and the Gulf Coast. Cherry’s unique business model of offering aggregates in combination with recycled aggregates represents an opportunity for Arcosa to replicate in other regions.”
“The acquisition gives us an immediate leadership position in recycled aggregates, a growing product category due to resource scarcity,” he adds. “Recycling aggregates decreases landfill use and improves air quality by reducing haul distances and energy consumption. Cherry is the largest recycled aggregates company in the country, and we look forward to building on [that] position.”