Arcosa, a manufacturer of infrastructure-related products and services, has reached an agreement with an affiliate of HIG Capital, to acquire ACG Materials business for around $315 million.
Arcosa expects the addition of ACG, a producer of specialty materials and aggregates, to be slightly accretive to earnings in the first year following the completion of the transaction.
Antonio Carrillo, Arcosa’s president and CEO, says: “The acquisition of ACG demonstrates early execution on key elements of our strategic growth plan: to expand our construction products business and to grow in attractive markets.”
The acquisition extends the company’s product portfolio and geographic reach as well as end markets, Carrillo adds.
Paul Harrington, president of ACG, says: “Arcosa provides an excellent platform for us to continue growing through organic investments and bolt-on acquisitions.”
The transaction is expected to close in the fourth quarter of 2018 or the first quarter of 2019.