Arcosa Announces Agreement To Acquire Ameron Pole Products From NOV Inc. For $180M In Cash

Author: Benzinga Newsdesk | March 11, 2024 08:09am

• Acquisition Provides Additional Scale to Engineered Structures in Attractive Infrastructure Markets and is Accretive to Overall Arcosa Margin
• Marks Entry into Complementary Concrete and Steel Pole Lighting Market
• Expands Position in Traffic and Telecommunication Structures
• $180 Million Purchase Price to be Funded with Cash and Available Revolver Capacity

Arcosa, Inc. (NYSE:ACA) ("Arcosa," the "Company," "We," or "Our,"), a provider of infrastructure-related products and solutions, today announced that it has entered into a definitive agreement to acquire Ameron Pole Products, LLC ("Ameron") from NOV Inc. (NYSE:NOV) for $180 million in cash.

Founded in 1970, Ameron is a leading manufacturer of highly engineered, premium concrete and steel poles for a broad range of infrastructure applications, including lighting, traffic, electric distribution, and small-cell telecom. With four manufacturing facilities strategically located in Alabama, California, and Oklahoma, Ameron serves its customers with a nationwide presence. For the year ended December 31, 2023, Ameron had revenues of approximately $94 million and Adjusted EBITDA of approximately $20 million, implying a 9.0x EBITDA acquisition multiple.

Commenting on the transaction, Antonio Carrillo, Arcosa's President and Chief Executive Officer, noted, "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."

The Company expects to fund the $180 million purchase price with a combination of cash on-hand and borrowings available under its revolving 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 and is expected to close in the second quarter of 2024.

For supplemental information on the transaction, please refer to materials located on our website at https://ir.arcosa.com/news-events/events-presentations.

Non-GAAP Financial Measures

This press release contains financial measures that have not been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). Reconciliations of non-GAAP financial measures to the closest GAAP measure are included in the accompanying table to this release.

Posted In: ACA NOV