Arcosa is to acquire producer of recycled aggregates Cherry Industries as part of a strategy to expand its presence in Texas.
Arcosa says the $298 million deal adds 12 locations to its existing 19 active aggregates and specialty materials sites.
Antonio Carrillo, Arcosa’s CEO, says: “The transaction is aligned with our strategic plan, accelerating the growth of our high-value Construction Products segment and enhancing our geographic position within Texas.”
“Additionally, the acquisition gives us an immediate leadership position in recycled aggregates, a growing product category due to resource scarcity and ESG benefits. Recycling aggregates decreases landfill use and improves air quality by reducing haul distances and energy consumption,” Carrillo adds.
Gibson Dunn acted as legal advisor to Arcosa. Stephens, Inc. served as financial advisor and Bradley Arant Boult Cummings LLP acted as legal advisor to Cherry.
The transaction is subject to customary closing conditions and regulatory provisions under the Hart-Scott-Rodino Act and is expected to close in the first quarter of 2020.
