Tinton Falls-based Stavola Holding Corporation has entered into a definitive agreement to be acquired by Dallas-based Arcosa, Inc. in a $1.2 billion transaction, the companies announced.
The cash transaction is subject to customary post-closing adjustments. A team of attorneys from Sills Cummis & Gross, lead by Robert Schiappacasse and Frederic Tudor, advised on the sale.
Founded in 1948, Stavola is an aggregates-led and vertically integrated construction materials company primarily serving the New York-New Jersey metropolitan area through its network of five hard rock natural aggregates quarries, twelve asphalt plants, and three recycled aggregates sites.
For the last twelve months ended June 30, Stavola generated revenues of $283 million and adjusted EBITDA of $100 million, representing a 35% adjusted EBITDA margin. The aggregates business contributed 56% to Stavola’s LTM Adjusted EBITDA. The structure of the transaction is expected to create tax benefits attributable to Arcosa with a net present value of approximately $125 million.
Arcosa CEO Antonio Carrillo said the acquisition is part of the company’s long-term strategy.
“Since becoming an independent public company in 2018, Arcosa has successfully executed against its long-term vision to grow in attractive markets and reduce the complexity and cyclicality of the overall business through strategic acquisitions and select divestitures,” he said. “Over that time, we have expanded our construction products business both organically and inorganically, deploying approximately $1.5 billion on value enhancing acquisitions to date and increasing our aggregates presence in the top 50 (metropolitan markets).”
Arcosa has also entered into a definitive agreement to sell its steel components business to Stellex Capital Management LLC, a New York-based private equity firm.
