Sources: Arcosa Inc., Dallas; CP staff
Two weeks after spinoff from Trinity Industries Inc. and New York Stock Exchange listing, conventional and lightweight aggregate producer Arcosa has entered a definitive agreement with an H.I.G. Capital LLC affiliate to acquire ACG Materials for $315 million.
Norman, Okla.-based ACG mines and processes materials for use in the construction, agriculture, food and pharmaceutical industries. It brings 24 active aggregate and five production facilities to Arcosa Construction Products’ 18 sand & gravel and expanded shale or clay lightweight aggregate operations, and will boost annual segment revenues upwards of 50 percent, to approximately $450 million. ACG operates in Florida, Missouri, Kansas, Oklahoma, Texas, Nevada, Washington and British Columbia.
“The acquisition demonstrates early execution on key elements of our strategic growth plan: To expand our Construction Products business and grow in attractive markets,” says Arcosa CEO Antonio Carrillo. “ACG is a strategically important acquisition, adding significant scale to the Construction Products segment, extending our specialty product portfolio and geographic reach, and expanding our end markets. Additionally, ACG’s experienced leadership team brings a track record of operating excellence and growth.”
“Arcosa provides an excellent platform for us to continue growing through organic investments and bolt-on acquisitions,” adds ACG President Paul Harrington. “Our management team is very enthusiastic about this combination, and we look forward to working with our counterparts in Arcosa’s Construction Products segment to drive profitable growth.”