Knife River In Deal To Buy Strata Corp. For $454 Mln

(RTTNews) - Construction materials provider Knife River Corp. (KNF) announced Friday that it has entered into a definitive agreement to acquire Strata Corp., a construction materials and contracting services provider, for $454 million.

Knife River expects Strata to be accretive to its adjusted EBITDA margin within the first year.

The deal is expected to close in the first half of 2025, subject to regulatory approval and customary closing conditions.

Knife River expects to use cash on hand and the proceeds from the issuance of long-term debt to finance the acquisition.

Strata, which was founded in 1910, is an aggregates-based, vertically integrated company with over 75 aggregates locations, extensive aggregate reserves and rail assets to bring those reserves to market. The firm is majority owned by Chairman and CEO James Bradshaw.

The North Dakota-based company with 28 ready-mix plants, three asphalt plants and a contracting services division, is expected to provide infill growth for Knife River's Central Segment.