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.”

Zach Mentz

About the Author:

Zach Mentz is the managing editor for Pit & Quarry magazine. He also serves as the managing editor for Portable Plants & Equipment magazine. Zach is a graduate of the Tim Russert Department of Communications at John Carroll University, where he served as editor in chief for the university’s student newspaper, The Carroll News. His previous experience also includes time spent in the Cleveland Indians communications department.

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