Knife River pens $454M deal for North Dakota neighbor Strata Corp.

Knife River Corp. has entered into a definitive agreement to acquire Strata Corp., a Grand Forks, N.D. independent with 28 ready mixed concrete and three asphalt plants, plus 75 aggregates sites, extensive reserves and related rail assets. Valued at $454 million and projected to close by mid-year, the transaction will mark Knife River’s largest since a June 2022 spin off from MDU Resources Group. Financed with cash on hand and proceeds from the issuance of long-term debt, it will significantly expand the Knife River Central Region.

“Strata is respected among peers and in its communities, and well-known for its strong culture and expertise,” says Knife River CEO Brian Gray. “It is a great success story—growing from a single gravel operation into a leading supplier of construction materials that employs over 900 team members during the peak season. We look forward to completing the transaction and welcoming the Strata team to the Life at Knife.”

“It’s not easy building a family business and it’s even harder coming to the point where you are ready to step away from it,” notes Strata Chairman and majority shareholder James Bradshaw, who oversaw much of the producer’s growth during 46 years as president and evolved the business from its roots as Bradshaw Gravel Supply, founded in the early 1900s. Both companies have a culture of putting people first and operating with integrity, he affirms, adding “We want what is best for our team and their future.”

“Strata’s high-quality assets allow us to expand our service territory within a region we know well,” affirms Gray. “We believe this acquisition is a prime example of our ‘Competitive EDGE’ strategy to profitably grow our business,” referencing the company’s EBITDA Margin Improvement, Discipline, Growth and Excellence pursuit.

Ahead of the Strata announcement, Knife River promoted Vice President of Support Services Glenn Pladsen to chief excellence officer, tasked with leading core Competitive EDGE elements. Pladsen has been directly involved in launching Process Improvement Teams (PIT Crews) for concrete, aggregate and sister operations, the Knife River Training Center, along with other strategic programs aimed at building a strong team and delivering profitable results. His role is being expanded to help the producer achieve industry-leading safety performance and excellence throughout its commercial and operational initiatives.

“We have seen significant early success with our PIT Crews and training and development efforts and believe there are considerable opportunities to build on this momentum,” notes Gray. “This is an exciting time at Knife River. We’re focused on continued growth and success. Glenn is well-respected across our organization and highly skilled at developing and standardizing best practices. There are multiple paths to achieving our strategic goals, and on each of them we are focused on excellence and continuous improvement.”

Pladsen joined Knife River in 2007. In addition to his previous Support Services role, he has led capital budgeting, safety, environmental and information technology processes. He holds a degree in mechanical engineering from North Dakota State University.