Arcosa – an infrastructure-related products and solutions provider – announced that it has entered into a definitive agreement to buy Ameron Pole Products from NOV for $180 million in cash.
Originally founded in 1970, Ameron is a leading manufacturer of highly engineered premium concrete and steel poles for various infrastructure applications, including lighting, traffic, electric distribution, and small-cell telecommunications.
With four manufacturing facilities located strategically in Alabama, California, and Oklahoma, Ameron serves its customers with a presence nationwide. For the year ended December 31, 2023, Ameron reported revenues of about $94 million and Adjusted EBITDA of about $20 million, implying a 9x EBITDA acquisition multiple.
Arcosa plans to fund the $180 million purchase price with cash on hand and borrowings available under its revolving credit facility. The deal—approved by the company’s Board of Directors—is subject to customary closing conditions.
Arcosa was formed in 2018 and grew rapidly through several acquisitions. In 2021, it acquired pure-play aggregates producer Southwest Rock Products for $150 million. In 2020, Arcosa acquired natural and recycled aggregates company Cherry Industries for $298 million and recycled aggregates company Strata Materials for $87 million.
KEY QUOTES:
“As we continue to effectively deploy capital into Arcosa’s growth businesses, we believe Ameron is an excellent strategic fit. It provides entry into the complementary steel and concrete lighting pole market while expanding our product offerings in traffic and telecom. The acquisition bolsters our Engineered Structures segment and increases our exposure to growing infrastructure end markets at an attractive valuation. We look forward to welcoming the Ameron team to Arcosa and combining our strengths to accelerate growth.”
– Antonio Carrillo, Arcosa’s President and Chief Executive Officer
