Sources: Arcosa Inc., Dallas; CP staff
Construction and lightweight aggregates producer Arcosa will gain a strong foothold in the New York-New Jersey Metropolitan Statistical Area—the largest U.S. Census Bureau-designated MSA—in a deal for the construction materials business of Stavola Holding Corp., Tinton Falls, N.J. Arcosa has entered a definitive agreement acquire five quarries, five recycled aggregate sites and 12 asphalt plants in New Jersey and Pennsylvania, their reported sales totaling $283 million for a fiscal year ending June 30.
“Since becoming an independent public company in 2018, Arcosa has successfully executed against its long-term vision to grow in attractive markets and reduce the complexity and cyclicality of the overall business through strategic acquisitions and select divestitures,” says CEO Antonio Carillo. “Over that time, we have expanded our Construction Products business both organically and inorganically, deploying approximately $1.5 billion on value enhancing acquisitions and increasing our aggregates presence in the top 50 MSAs.”
The latest transaction accelerates a strategic transformation, he adds, ushering “a premier aggregates-led platform in the nation’s largest MSA with favorable attributes from its exposure to lower volatility infrastructure-led end-markets. Stavola brings an experienced management team, strong customer service reputation, and successful track record.”
Concurrent with Stavola Holding, Arcosa announced a definitive agreement to sell its steel railcar and mining components business to Stellex Capital Management LLC, New York-based private equity firm.
Related articles