New Enterprise acquires assets from aggregate, paving companies
New Enterprise Stone & Lime Co. acquired assets from Berks Products Corp. and EJB Paving & Materials Co.
Through the acquisition, New Enterprise gained two aggregate plants, two hot mix asphalt plants, four ready-mixed concrete plants and a construction supply center in Berks County, Pennsylvania. The facilities are situated between the company’s Lehigh Valley and Lancaster, Pennsylvania, locations.
According to New Enterprise, the purchase price of the two acquisitions was about $46.3 million.
New Enterprise plans to leverage its new shared service center to integrate the nine acquired facilities into its operations.
“Together, with our $46.5 million of debt reduction in the previous two quarters, the Berks County acquisitions demonstrate the viability of our profit enhancement plan initiated five years ago,” says Paul Detwiler III, CEO of New Enterprise. “The acquisitions were completed with no additional long-term debt and will push our operating profit to record highs. We have now shown our ability to grow operating profit while reducing debt – a cornerstone of our operating plan going forward.”
The company adds that it believes its fiscal year ending Feb. 28, 2018 will mark its fifth consecutive year of expanding operating profit. New Enterprise projects that the profits from both acquisitions will offset any lost profit from the company’s recent divestiture of PSI traffic and safety business.
New Enterprise Stone & Lime Co. is a privately held, vertically integrated construction materials supplier and heavy/highway construction contractor in Pennsylvania and western New York and a national traffic safety services and equipment provider.
About the Author: Allison Kral
Allison Kral is the former senior digital media manager for North Coast Media (NCM). She completed her undergraduate degree at Ohio University where she received a Bachelor of Science in magazine journalism from the E.W. Scripps School of Journalism. She works across a number of digital platforms, which include creating e-newsletters, writing articles and posting across social media sites. She also creates content for NCM's Portable Plants magazine, GPS World magazine and Geospatial Solutions. Her understanding of the ever-changing digital media world allows her to quickly grasp what a target audience desires and create content that is appealing and relevant for any client across any platform.Subscribe to Pit & Quarry
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