New Enterprise Stone and Lime announces acquisitions
Published by Rebecca Bowden,
New Enterprise Stone & Lime Co. (NESL) has acquired the core assets of Berks Products Corporation and EJB Paving & Materials Co.
These strategic acquisitions include two aggregate plants, two hot mix asphalt plants, four ready mixed concrete plants and a construction supply centre in Berks County, Pennsylvania. The facilities are ideally suited between NESL’s existing Lehigh Valley and Lancaster locations, expanding its operating footprint and market scope into the Reading, Pennsylvania market.
The two acquisitions had a total purchase price of approximately US$46.3 millions and the nine acquired facilities will be seamlessly integrated into the broader NESL operations.
The company anticipates that both acquisitions will provide significant synergies to NESL’s primary business next fiscal year, with the incremental profit from the acquisitions offsetting any lost profit from its recent divestiture of its PSI traffic and safety business.
Speaking of the acquisition, Paul Detwiler, III, Chief Executive Officer of New Enterprise Stone & Lime Co., Inc., commented, “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. 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.”
Read the article online at: https://www.worldcement.com/the-americas/13022017/new-enterprise-stone-and-lime-announces-acquisitions/
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