In an era of cloud-based software buyouts, this 10-figure deal is as down-to-earth as it gets.
Dallas-based Arcosa—a leading provider of infrastructure-related products and solutions—is acquiring the construction materials business of Stavola Holding Corporation and its affiliated entities in an all-cash $1.2 billion deal.
Founded in 1948, New Jersey-based Stavola specializes in aggregates and vertically integrated construction materials. The company operates five hard rock natural aggregates quarries, 12 asphalt plants, and three recycled aggregates sites, and primarily services the New York-New Jersey metro area.
Stavola generated revenues of $283 million over the last 12 months, along with Adjusted EBITDA of $100 million, representing a 35% Adjusted EBITDA Margin, Arcosa said—adding that the transaction’s structure is expected to create tax benefits attributable to Arcosa “with a net present value of approximately $125 million.”
Antonio Carrillo, Arcosa’s president and CEO, said that since it became 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.”
“Over that time, we’ve 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,” Carrillo added in a statement.
The CEO said the acquisition “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.”
He noted that construction products represent 65% of Arcosa’s LTM Adjusted EBITDA.
“Stavola brings an experienced management team, a reputation for strong customer service, and a successful track record,” Carrillo added.
Arcosa’s businesses have a 150-year-plus legacy
Though it was founded in 2018, Arcosa’s legacy businesses have an even longer history than Stavola. Arcosa’s steel components business—a Pennsylvania-based leading supplier of railcar coupling devices, railcar axles, and circular forgings—has a legacy that dates back over 150 years. That business operates under the brands McConway & Torley, Standard Forged Products, and McKees Rock Forgings and serves rail, mining, and other infrastructure-related industries.
In March, Arcosa announced that it was acquiring Ameron Pole Products from NOV Inc. for $180 million in cash. At the time, Carrillo called that acquisition “an excellent strategic fit” as his company continued to “effectively deploy capital into Arcosa’s growth businesses.”
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R E A D N E X T
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Arcosa Inc., a Dallas-based provider of infrastructure-related products and solutions, will acquire Ameron Pole Products LLC from NOV Inc. for $180 million in cash. Arcosa President and CEO Antonio Carrillo said the acquisition of Ameron is "an excellent strategic fit" as the company continues to "effectively deploy capital into Arcosa's growth businesses." The deal provides entry into the "complementary steel and concrete lighting pole market," expands Arcosa's product offerings in traffic and telecom, and bolsters its Engineered Structures segment, he said in a statement, adding that it "increases our exposure to growing infrastructure end markets at an attractive valuation." Carrillo…
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