MDU Resources Group Inc. acquired Tri-City Paving Inc., a general contractor and aggregate, asphalt and ready-mix concrete supplier headquartered in Little Falls, Minn.
Tri-City will become part of Knife River Corp., the construction materials subsidiary of MDU Resources. Financial details of the acquisition were not disclosed. MDU Resources anticipates the acquisition will be accretive to earnings per share.
Tri-City is an established Central Minnesota construction company whose service area, strong aggregate supply and vertically integrated business model make it a strategic fit for Knife River.
“For 70 years, Tri-City has provided high-quality construction materials and contracting services to support growth in Central Minnesota,” said David C. Barney, Knife River president and CEO. “We are excited to welcome the 150 Tri-City employees to Knife River and are pleased to be expanding our operations in Minnesota. Tri-City’s service territory in the Little Falls/Brainerd area helps to connect our Central and Northern Minnesota locations.”
In addition to its aggregate reserves and related processing equipment, Tri-City operates three ready-mix plants, three portable asphalt plants and a dust-control operation. It will become part of Knife River’s Central Minnesota Division, which is headquartered in Sauk Rapids.
“Strategic acquisitions like this one are what built our construction materials business, and with two deals closed in the last six weeks, it is good to be in growth mode again at Knife River,” said David L. Goodin, president and CEO of MDU Resources Group. “We look forward to continued success in Minnesota and are optimistic about additional growth opportunities at Knife River and our other businesses.”