Arcosa to acquire StonePoint in $375M deal

Arcosa reached an agreement to acquire StonePoint Materials from an affiliate of Sun Capital Partners.

According to Arcosa, the deal is valued at $375 million. The transaction is subject to customary closing conditions and is expected to close in April 2021.

StonePoint is one of the largest aggregate producers in the U.S. Arcosa says StonePoint has about 9 million tons of annual production across 20 locations, and more than 40 years of reserve life.

StonePoint operates in three regions: the Gulf Coast (Texas, Louisiana, Mississippi), Tennessee/Kentucky, and Pennsylvania/West Virginia. About 80 percent of StonePoint’s EBITDA (earnings before interest, tax, depreciation and amortization) is generated from aggregate, Arcosa says. The remaining 20 percent is earned from asphalt and other services.

“StonePoint represents an outstanding strategic fit for Arcosa,” says Antonio Carrillo, Arcosa president and CEO. “The transaction aligns with Arcosa’s strategy to expand our aggregates business in our current footprint and to enter new, attractive geographies. StonePoint has an experienced operating team, an attractive pipeline of organic growth projects and bolt-on acquisitions, and a footprint in fast-growing markets. We look forward to welcoming the StonePoint team to the Arcosa family and building on our combined strengths.”

StonePoint CEO Colin Oerton also commented on the deal.

“Arcosa will be an excellent long-term owner of the StonePoint platform and will be able to further accelerate the growth of the business,” Oerton says. “We have built an exceptional business and team under Sun Capital and want to thank all of our employees and partners for their work in building a leading U.S. aggregates company.”

According to Arcosa, StonePoint is projected to generate revenues of $117 million and adjusted EBITDA of $28 million for the 12 months ending March 31, 2021. Additionally, Arcosa expects StonePoint to earn at least $30 million of adjusted EBITDA in 2021 and return to 2019’s pre-pandemic level of $33 million by 2022.