Arcosa to acquire ACG Materials for approximately $315M
Arcosa, announced that it has reached a definitive agreement with an affiliate of H.I.G. Capital to acquire the ACG Materials business for approximately $315M. ACG is a producer of specialty materials and aggregates with estimated revenues of approximately $152 million and adjusted EBITDA of approximately $32M for the trailing twelve month period ended August 31, 2018, resulting in a purchase multiple of approximately 9.8x. Arcosa expects the transaction to be slightly accretive to earnings in the first year following transaction completion. The Company expects to fund the approximate $315M 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 expects to revisit its revenue and EBITDA guidance for fiscal year 2019.