Natural Resource Partners L.P. (NRP) announced that it has signed a definitive agreement to sell its construction aggregates business segment, VantaCore Partners LLC, to an affiliate of Sun Capital Partners Inc. for $205 million before transaction expenses and customary purchase price adjustments.
The closing of the sale is expected to occur by year-end 2018 and is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act.
“The sale of our construction aggregates business segment will enable NRP to substantially accelerate the de-levering and de-risking of our capital structure and represents an exit from this business,” said Craig Nunez, president and chief operating officer of NRP.
Credit Suisse Securities (USA) LLC is acting as financial advisor to NRP. Vinson & Elkins LLP is acting as legal advisor to NRP.
“VantaCore provides its customers with high quality, competitively priced products,” according to a statement on the company’s website. “We supply a complete range of aggregates, from graded limestone to washed sand, gravel and asphalt. We employ over 250 people across the four business units, many of whom have worked at the same facility since its inception.”
Natural Resource Partners L.P., a master limited partnership headquartered in Houston, is a diversified natural resource company that owns interests in coal, and industrial minerals across the United States. A large percentage of NRP’s revenues are generated from royalties and other passive income. In addition, NRP owns an equity investment in Ciner Wyoming, a trona/soda ash operation.