Alcrete enters Florida market through American Concrete Industries

Alcrete LLC, a drainage structures operator with an Oakbrook Terrace, Ill. headquarters and plants in Alabama and North Carolina, has acquired American Concrete Industries Inc. of Fort Pierce, Fla. The deal affords Alcrete an NPCA Certified Plant, a skilled workforce and a 10-acre production site, along with a significantly larger Southeast region footprint.

“We are pleased to welcome the employees of American Concrete Industries to our team,” says Justin D. Norman, Alcrete chief executive officer. “This acquisition allows for fulfillment of the key strategic initiative of entering the state of Florida. We believe in the continued growth of the Florida construction market and are pleased that Alcrete will be able to participate in the development of this infrastructure.”

“We are excited to join forces with Alcrete, a company that shares our commitment to providing high-quality precast concrete products and services,” adds Bob Snowe, who founded American Concrete in 1987. “This is a great move for our team and will give them an opportunity to work with a great organization.

Surveying merger & acquisition activity across the Industrial Products landscape, St. Louis-based investment banker ButcherJoseph & Co. cites resiliency in deal volumes and valuations on the heels of record 2021 and 2022 levels. Despite macroeconomic headwinds and downward pressure on volumes, operators have benefitted from declining costs (such as fuel and energy) and effective price increases. To support long-term sustainability, large Industrial Products players have prioritized inorganic growth to capture market share and improve market positioning. M&A can be a more efficient approach to achieving strategic initiatives as compared to “greenfield investments,” which often take much longer to implement, ButcherJoseph advisors note.

Increased public-sector spending has encouraged many operators to make new investments in manufacturing facilities and equipment, increasing confidence for acquirers to consider investments in the industry. The Infrastructure Investment and Jobs Act provides federal support for new major construction opportunities across the United States, fueling Industrial Products demand through the next six to eight years. As a result of increased project funding, businesses have developed substantial backlogs and broadly improved sector profile quality and certainty.

Underlying industry tailwinds have led executives to expect a significant uptick in acquisitions and consolidation moves. Strategic acquirors, which accounted for 64.7 percent of 2023 deal volume through the third quarter, are expected to utilize M&A to seize new projects, capitalize on heightened demand, and fill key employment needs in a historically tight labor market. Indeed, ButcherJoseph staff observes, labor shortages have contributed to recent M&A activity peaks: Operators have struggled to maintain a reliable workforce over the past 12 months, motivating large strategic players to look at the benefits of acquired human capital to support enterprise capabilities.

ButcherJoseph & Co. specializes in sale transactions to strategic and financial buyers, employee ownership transactions, capital advisory, and valuations and fairness opinions for privately held businesses. Along with St. Louis headquarters, the firm has a presence in Arizona, Chicago, Charlotte, Florida, Nashville and Washington, D.C.