Arcosa Inc. has acquired Strata Materials for approximately $87 million. Strata is a leading provider of recycled aggregates in the Dallas-Ft. Worth area, with five recycled aggregates locations and one natural aggregates plant. Strata produced more than 2 million tons of aggregates in the last 12 months.
Commenting on the transaction, Antonio Carrillo, Arcosa’s president and CEO, noted, “Building on the Cherry acquisition we completed in January 2020, we are excited to replicate this model in the Dallas-Ft. Worth region. Strata’s strategic network will allow us to serve customers with a complementary product offering that includes both recycled and natural aggregates. We believe that this model will have increasing value as the construction industry seeks to reduce transportation costs and its carbon footprint by using both recycled and natural aggregates.
“By leveraging our Cherry team’s operational and commercial expertise in recycled aggregates, and our long-standing relationships with DFW customers, we expect to drive incremental growth,” he continued. “Strata’s margins are similar to Cherry’s recycled aggregates margins, and should be accretive to our overall Construction Products Group margin. Overall, Strata is an excellent strategic fit as we continue to reposition our company around core infrastructure products. We are enthusiastic about welcoming the Strata team to Arcosa.”
The company funded the approximately $87 million purchase price with cash on-hand and continues to have low leverage and ample liquidity to pursue its disciplined growth strategy.
Arcosa now operates a total of 40 natural aggregates, recycled aggregates, and specialty materials plants in Texas, a state with healthy population growth, strong fiscal health and a robust public infrastructure program, the company stated.