Arcosa Buys Cherry

Arcosa buys Cherry.
   
Arcosa buys Cherry Industries for $298 million.
   
Cherry is the largest privately owned producer of natural and recycled aggregates in the Houston area. Established in 1952, Cherry has developed a unique platform of mines, processing facilities, and services to offer a broad range of construction materials to customers. It serves highway, industrial, commercial, and residential markets, and also provides concrete demolition services, primarily to secure raw material for recycled aggregates. As one of the nation’s largest demolition contractors, Cherry has positioned itself as the go-to firm for demolition, asset recovery, and dismantling. Operating a fleet of large-class heavy equipment and specialized attachments instead of renting, it can make quick decisions and speed up its projects and products. Cherry operates 12 sites across the Houston area, including 9 recycling centers. One of the largest recyclers on the Gulf Coast, it recycles 2 million tons of concrete and asphalt and 50,000 tons of steel annually. The Houston locations add to Arcosa’s existing 19 active aggregate and specialty materials locations in Texas, building out Arcosa’s footprint in a key market with population growth, highway investments, and positive private demand drivers.
   
Antonio Carrillo of Arcosa said: ‘We are excited about this acquisition. The transaction is aligned with our strategic plan, accelerating the growth of our high-value Construction Products segment and enhancing our geographic position within Texas. Cherry’s unique platform will offer added organic and acquisition growth opportunities in Houston and adjacent markets in Texas and the Gulf Coast. Cherry’s unique business model of offering aggregates in combination with recycled aggregates is an opportunity for Arcosa to replicate in other regions. The acquisition gives us an immediate leadership position in recycled aggregates, a growing product category due to resource scarcity and ESG benefits. Recycling aggregates decreases landfill use and improves air quality by reducing haul distances and energy consumption. Cherry is the largest recycled aggregates company in the country, and we look forward to building on Cherry’s leadership position.’
   
Leonard Cherry of Cherry said: ‘We are pleased to join Arcosa, which is an excellent cultural and strategic fit for our employees and our business. We look forward to working with the Construction Products team to grow our natural and recycled aggregates business in Houston and in new markets.’
   
Stephens served as financial advisor to Arcosa. Gibson Dunn served as legal advisor.
   
Bradley Arant Boult Cummings served as legal advisor to Cherry.

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