Arcosa Inc. has reached a definitive agreement with an affiliate of H.I.G. Capital, LLC to acquire ACG Materials for approximately $315 million.
ACG is a producer of specialty materials and aggregates with estimated revenues of approximately $152 million and adjusted EBITDA of approximately $32 million for the trailing 12-monthperiod ended Aug. 31, 2018.
Based in Norman, Okla., ACG mines, mills, processes and distributes a broad range of specialty materials and aggregates. Its primary products are sold to infrastructure and building products markets, as well as to the agriculture, food and pharmaceutical industries.
ACG adds 24 active mines and five production facilities to Arcosa’s 18 active aggregates and specialty materials locations, and is expected to expand the current annualized revenues of Arcosa’s Construction Products segment by roughly 50 percent, to approximately $450 million.
ACG’s operating facilities are located in Texas, Florida, Oklahoma, Kansas, Missouri, Washington, Nevada, and British Columbia.
Commenting on the transaction, Antonio Carrillo, Arcosa’s president and CEO, noted, “The acquisition of ACG demonstrates early execution on key elements of our strategic growth plan: to expand our Construction Products business and to grow in attractive markets. ACG is a strategically important acquisition, adding significant scale to the Construction Products segment, extending our specialty product portfolio and geographic reach, and expanding our end markets. Additionally, ACG’s experienced leadership team brings a track record of operating excellence and growth. We look forward to leveraging its expertise as we continue to expand our Construction Products segment through organic growth initiatives and acquisitions.”
Paul Harrington, president of ACG, added, “Arcosa provides an excellent platform for us to continue growing through organic investments and bolt-on acquisitions. Our management team is very enthusiastic about this combination, and we look forward to working with our counterparts in Arcosa’s Construction Products segment to drive profitable growth.”