Eurovia has signed an agreement with Salini Impregilo Group to acquire the Cheshire, Conn.-based Lane Asphalt Plants & Paving division of its subsidary Lane Construction. The transaction is reported at $555 million.
These operations, based in 10 states, on the East Coast and in Texas, generate more than $600 million in annual revenue and include approximately 40 asphalt-production plants and several quarries.
This acquisition complements Eurovia’s current operations in the United States where its subsidiaries Hubbard Construction and Blythe Construction operate in the Southeastern states of Florida, Georgia, North and South Carolina.
As a result of this acquisition, subject to regulatory approval, Eurovia becomes one of the larger asphalt producers on the East Coast with a total revenue of about $1.2 billion.
“We are divesting an asset that is not strategic for us as we consolidate the growth of Lane, a company that is destined to become a development pole for the Group in North America in all segments of large, complex infrastructure – from transport to tunneling to water,” Pietro Salini, chief executive officer of the Salini Impregilo Group, said in a statement. “From an industrial perspective, the sale of the Plants and Paving division will allow Lane to reorganize itself and focus on big public projects. It already has a backlog of about $3 billion, revenue of about $1.4 billion in the United States excluding the division and stable cash generation.”
Eurovia has a network of more than 300 quarries worldwide that produce 90 million tpy of aggregates.