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Fri August 02, 2024
Business Wire
Arcosa Inc. has entered into a definitive agreement to acquire the construction materials business of Stavola Holding Corporation and its affiliated entities for $1.2 billion in cash, subject to customary post-closing adjustments.
Founded in 1948, Stavola is an aggregates-led and vertically integrated construction materials company primarily serving the New York-New Jersey Metropolitan area through its network of five hard rock natural aggregates quarries, 12 asphalt plants, and three recycled aggregates sites.
For the past 12 months ended June 30, 2024, Stavola generated revenues of $283 million and Adjusted EBITDA of $100 million, representing a 35 percent adjusted EBITDA margin. The aggregates business contributed 56 percent to Stavola's LTM Adjusted EBITDA. The structure of the transaction is expected to create tax benefits attributable to Arcosa with a net present value of approximately $125 million.
"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," said Antonio Carrillo, Arcosa's president and CEO. "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," he added. "Pro forma for the transactions, Construction Products represents 65 percent of Arcosa's LTM Adjusted EBITDA, and consolidated LTM Adjusted EBITDA Margin expands approximately 220 basis points. Stavola brings an experienced management team, a reputation for strong customer service, and a successful track record."