Arcosa is a provider of infrastructure-related products. Image: Arcosa
Arcosa has announced its acquisition of Stavola in a billion-dollar deal for the infrastructure products manufacturer.
Stavola is an established company in the construction materials and aggregates sector especially in the New York and New Jersey metropolitan areas. The company has a network of five hard rock quarries, twelve asphalt plants and three recycled aggregate sites.
The deal, according to public information, is for $1.2 billion US in cash.
“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,” Arcosa president and chief executive officer Antonio Carrillo said.
“Over that time, we have expanded our Construction Products business both organically and inorganically, deploying approximately $1.5 billion on value-enhancing acquisitions to date and increasing our aggregates presence in the top 50 MSAs.
“The acquisition of Stavola accelerates Arcosa’s strategic transformation by adding 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 generated revenues of $283 million and Adjusted EBITDA of $100 million, representing a 35 per cent Adjusted EBITDA Margin. The aggregates business contributed 56 per cent to Stavola’s LTM Adjusted EBITDA. According to Arcosa, the structure of the transaction is expected to create tax benefits attributable to Arcosa with a net present value of approximately $125 million.
Arcosa is a US-based manufacturer that serves the construction, infrastructure, and transportation markets. The company has been operating for more than 85 years and employs more than 6,000 people.
In another announcement, Arcosa has agreed to sell its steel components business to Stellex Capital Management. Based in Pennsylvania and operating under the brands McConway & Torley, Standard Forged Products, and McKees Rock Forgings, the business serves rail, mining, and other infrastructure-related industries.
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