Arcosa, Inc. - ACA STOCK NEWS

Arcosa, Inc. (NYSE: ACA) has completed two significant transactions: the $1.2 billion acquisition of Stavola's construction materials business and the sale of its steel components business. The Stavola acquisition, funded through a combination of senior notes and a term loan, brings five hard rock quarries, twelve asphalt plants, and three recycled aggregates sites into Arcosa's portfolio. Stavola generated $283 million in revenue and $100 million in Adjusted EBITDA for the LTM ended June 30, 2024.

These moves align with Arcosa's strategy to grow in attractive markets while reducing cyclicality and complexity. Post-transactions, the Construction Products segment will represent nearly two-thirds of Arcosa's Adjusted EBITDA, up from one-third at spin-off. The company aims to return to its net leverage target of 2.0-2.5x within 18 months. Arcosa plans to update its full year 2024 guidance in the upcoming third quarter earnings release.

Arcosa (NYSE: ACA), a provider of infrastructure-related products and solutions, has announced a regular quarterly cash dividend of $0.05 per share on its $0.01 par value common stock. The dividend will be payable on October 31, 2024 to stockholders of record as of October 15, 2024. This announcement demonstrates Arcosa's commitment to returning value to shareholders and maintaining a consistent dividend policy.

Arcosa, Inc. (NYSE: ACA) has successfully closed its previously announced private offering of $600 million aggregate principal amount of 6.875% senior notes due 2032. The company plans to use the net proceeds, along with expected borrowings under a Term Loan B Facility, to fund its acquisition of the construction materials business of Stavola Holding and its affiliated entities. Any remaining funds will be used to repay outstanding amounts under Arcosa's revolving credit facility.

The notes are senior unsecured obligations of Arcosa, guaranteed by its domestic subsidiaries that are guarantors under its senior credit facility. They were offered and sold only to qualified institutional buyers and certain non-U.S. persons, in compliance with Securities Act regulations. The notes are subject to a special mandatory redemption if the acquisition is not completed within the specified timeframe.

Arcosa, Inc. (NYSE: ACA) has announced the pricing of a $600 million private offering of 6.875% senior notes due 2032. The offering is expected to close on August 26, 2024, subject to customary conditions. The net proceeds, along with borrowings from a Term Loan B Facility, will be used to fund the $1.2 billion acquisition of Stavola Holding 's construction materials business. Any remaining funds will repay outstanding amounts on Arcosa's revolving credit facility.

The notes will be senior unsecured obligations, initially guaranteed by Arcosa's domestic subsidiaries that are guarantors under its senior credit facility. They are being offered only to qualified institutional buyers and non-U.S. persons, and are not registered under the Securities Act.

Arcosa, Inc. (NYSE: ACA) has announced plans to offer $600 million in senior notes due 2032, subject to market conditions. The proceeds, along with expected borrowings from a Term Loan B Facility, will fund the $1.2 billion acquisition of Stavola Holding 's construction materials business. Any remaining funds will be used to repay Arcosa's revolving credit facility.

The notes will be senior unsecured obligations, initially guaranteed by Arcosa's domestic subsidiaries that are guarantors under its senior credit facility. The offering is to qualified institutional buyers and non-U.S. persons, complying with Rule 144A and Regulation S of the Securities Act. The notes are subject to a special mandatory redemption if the acquisition is not completed within the specified timeframe.

Arcosa, Inc. (NYSE: ACA) has announced the launch of a proposed $700 million senior secured Term Loan B Facility due 2031. The company plans to use the proceeds from this Term Loan, along with available cash and other unsecured debt, to fund its previously announced $1.2 billion acquisition of the construction materials business of Stavola Holding and its affiliated entities.

The closing of the Term Loan is expected to occur in the fourth quarter of 2024, subject to market conditions, negotiation and execution of definitive documents, and the satisfaction of customary closing conditions, including the concurrent closing of the acquisition. Arcosa cautions that there are no guarantees of success in its marketing efforts or ability to obtain the Term Loan.

Stellex Capital Management, a middle-market private equity firm, has announced a definitive agreement to acquire McConway & Torley (M&T) and Standard Forged Products (SFP) from Arcosa, Inc. (NYSE: ACA). The acquisition is expected to close in Q3. The Company, based in Pittsburgh, PA, has been operating since 1869, producing cast, forged, and machined products for rail and industrial customers across three facilities.

As an independent entity, the Company aims to accelerate growth through organic and acquisitive opportunities. David Meyer, a 25-year industry veteran, has been named CEO and will work with the existing management team. The acquisition aligns with Stellex's strategy of applying operational expertise to drive growth in critical manufacturing sectors and reinforces their commitment to the Pittsburgh region.

Arcosa Inc (NYSE: ACA) has announced significant portfolio actions to advance its long-term strategy:

1. Acquisition: Arcosa will acquire Stavola's construction materials business for $1.2 billion, expanding into the New York-New Jersey MSA with an aggregates-led platform generating $283 million in revenue and $100 million in Adjusted EBITDA.

2. Divestitures: Arcosa will sell its steel components business and has completed the sale of other non-core assets for a total of $137 million.

These actions will accelerate Arcosa's shift to higher-margin Construction Products, reducing portfolio complexity and cyclicality. Post-transactions, Construction Products will represent 65% of Arcosa's Adjusted EBITDA, with overall LTM Adjusted EBITDA margin expanding by 220 basis points.

Arcosa, Inc. (NYSE: ACA) reported strong second quarter 2024 results, with record quarterly revenues of $664.7 million (up 14% year-over-year) and Adjusted EBITDA of $112.7 million (up 31%). The company raised the low end of its full-year 2024 Adjusted EBITDA guidance to $420-$440 million. Key highlights include:

- Construction Products: Revenues up 4% to $276.1 million, Adjusted Segment EBITDA up 22%
- Engineered Structures: Revenues up 33% to $274.8 million, Adjusted Segment EBITDA up 48%
- Transportation Products: Revenues flat at $113.8 million, Adjusted Segment EBITDA up 7%

Arcosa also announced a $1.2 billion acquisition of Stavola's construction materials business and the divestiture of its steel components business, aligning with its strategic vision for growth.