Arcosa To Acquire ACG Materials For About $315 Mln

(RTTNews) - Arcosa, Inc. (ACA), a manufacturer of infrastructure-related products and services, announced that it has reached a definitive agreement with an affiliate of H.I.G. Capital, LLC to acquire the ACG Materials business for about $315 million.

Arcosa expects the transaction to be slightly accretive to earnings in the first year following transaction completion.

Oklahoma-based 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 twelve month period ended August 31, 2018.

ACG adds 24 active mines and 5 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%, to approximately $450 million.

Arcosa expects to fund the purchase price with a combination of cash on-hand and advances under its $400 million five year, credit facility.

The transaction, which has been approved by the Company's Board of Directors, is subject to customary closing conditions and regulatory provisions under the Hart-Scott-Rodino Act.

The transaction is expected to close in the fourth quarter of 2018 or first quarter of 2019. After closing and additional clarity on purchase price accounting, the Company said it expects to revisit its revenue and EBITDA guidance for fiscal year 2019.