Published on 10 Apr 2024 on Zacks via Yahoo Finance
Arcosa (ACA) Buys Ameron, Expands Infrastructure Portfolio
Arcosa, Inc. ACA, a prominent provider of infrastructure solutions, has finalized the acquisition of Ameron Pole Products LLC from NOV Inc. NOV for $180 million. Ameron's acquisition enhances Arcosa's product offerings in traffic and telecom structures, marking the company's entry into the concrete and steel lighting pole market.
Buyout Synergies
Ameron, established in 1970, specializes in manufacturing concrete and steel poles for various infrastructure applications. With four strategically located manufacturing facilities across the United States, Ameron recorded revenues of approximately $94 million in 2023.Apart from boosting Arcosa's product offerings in traffic and telecom structures, this Ameron addition accelerates the company’s long-term growth trajectory, particularly in its Engineered Structures segment. The acquisition reflects Arcosa's commitment to a disciplined acquisition strategy aimed at strengthening its position in high-growth markets.The acquisition was financed through a combination of cash reserves and $160 million in borrowings from Arcosa's revolving credit facility. With solid cash flow support, Arcosa remains focused on identifying attractively-priced acquisitions that complement its existing portfolio and bolster its presence in key markets.Arcosa plans to update its full-year 2024 revenue and adjusted EBITDA guidance in conjunction with the release of its first-quarter results. This acquisition is expected to play a significant role in shaping Arcosa's financial outlook for the year ahead, further solidifying its position as a leading provider of infrastructure-related products and solutions.In conclusion, Arcosa's acquisition of Ameron represents a strategic expansion of its infrastructure portfolio, positioning the company for sustained growth in key markets. With a focus on disciplined acquisition strategies and supported by strong cash flow, Arcosa continues to reinforce its market leadership and drive value for its stakeholders.