NESL completes acquisition and divestiture

By |  May 11, 2018

Detwiler III

New Enterprise Stone & Lime Co. (NESL) acquired assets of both Popple Construction and Pioneer Aggregates. The acquisitions include one aggregate plant, one hot-mix asphalt plant and a paving laydown business.

The newly acquired facilities are located between NESL’s Clifford, Pennsylvania, and Allentown, Pennsylvania operations, allowing the company to expand its footprint into the Wilkes-Barre/Scranton, Pennsylvania market.

The purchase price for Popple Construction and Pioneer Aggregates, also known as the Laflin acquisition, was about $22.3 million.

Additionally, NESL and its subsidiary Work Area Protection (WAPCO), entered into an asset purchase agreement with Hill & Smith Holdings to sell all of the assets of the WAPCO business. The cash purchase price for the WAPCO assets was $42 million.

“The two transactions represent a key step in our strategic alignment as a construction materials company focusing on aggregate sales,” says Paul Detwiler III, NESL president and CEO. “We believe the Laflin acquisition, after a full year of cost savings and synergies, will generate a similar adjusted EBITDA as the WAPCO assets, allowing us to further de-leverage and de-risk NESL.”

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