Knife River acquires aggregate, ready-mix operations

By |  March 5, 2019

Logo: MDU Resources

Knife River Corp., a subsidiary of MDU Resources Group, acquired additional aggregate deposits in Texas and a ready-mix concrete supplier in Oregon.

The aggregate acquisition covers 570 acres of land purchased from Capitol Aggregates, which did not disclose financial details, near Marble Falls, Texas. Knife River expects this source will provide an estimated 40-year supply of aggregate to the company’s existing Texas markets.

The “Honey Creek” property includes access to a major rail line, and Knife River anticipates adding a rail-loading facility to the site to transport aggregate to the company’s existing locations in Beaumont, Bryan and Waco, Texas, as well as third parties.

“This acquisition supports our strategy of focusing on vertical integration,” says David Goodin, president and CEO of MDU Resources. “High-quality construction materials are centrally important to Knife River, and we believe that growing our aggregates position in Texas and owning more of our source rock is a good business decision.”

In addition, Knife River Corp. acquired Viesko Redi-Mix, which is headquartered near Salem, Oregon.

The acquisition complements Knife River’s existing Oregon operations and provides expansion for the company into both the Willamette Valley and Portland metro markets, according to the company. Financial details of this transaction were not disclosed.

“As we continue to grow our business, we are looking for companies like Viesko: well-run operations in growing markets where we have familiarity,” says David Barney, president and CEO of Knife River Corp. “We have a lot of experience in Oregon, and we’re excited to further expand our footprint.”

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