Knife River Corporation announced on December 20, 2024, that it has entered into a definitive agreement to acquire Strata Corporation for $454 million. This purchase price reflects a multiple in the high single digits based on Strata’s projected 2025 Adjusted EBITDA.
Strata Corporation is an aggregates-based, vertically integrated construction materials and contracting services provider operating in North Dakota and northwestern Minnesota. The acquisition includes over 75 aggregates locations, extensive aggregate reserves, 28 ready-mix plants, three asphalt plants, and a contracting services division.
The transaction is expected to provide infill growth for Knife River’s Central Segment and is anticipated to be accretive to Knife River’s Adjusted EBITDA margin within the first year. The acquisition is projected to close in the first half of 2025, subject to regulatory approval and customary closing conditions, and will be financed using cash on hand and proceeds from long-term debt.
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