Arcosa expands in Texas through acquisition

Arcosa acquired Strata Materials in a transaction valued at about $87 million.

According to Arcosa, Strata is a provider of recycled aggregates in the Dallas-Fort Worth (DFW) area, with five recycled aggregate locations and one natural aggregate plant. Strata produced more than 2 million tons of aggregate in the last 12 months, Arcosa says.

“Building on the Cherry acquisition we completed in January 2020, we are excited to replicate this model in the Dallas-Fort Worth region,” says Antonio Carrillo, Arcosa president and CEO. “Strata’s strategic network will allow us to serve customers with a complementary product offering that includes both recycled and natural aggregates. We believe that this model will have increasing value as the construction industry seeks to reduce transportation costs and its carbon footprint by using both recycled and natural aggregates.

“By leveraging our Cherry team’s operational and commercial expertise in recycled aggregates and our long-standing relationships with DFW customers, we expect to drive incremental growth,” Carrillo adds. “Strata’s margins are similar to Cherry’s recycled aggregates margins, and should be accretive to our overall construction products group margin.”

Arcosa now operates 40 natural aggregate, recycled aggregate and specialty materials plants in Texas.