Arcosa, Inc. Announces Agreement to Divest Barge Business for $450 Million
- Transaction Underscores Commitment to Creating Shareholder Value through Portfolio Transformation and Simplification
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Sharpens the Company’s Focus on Key Growth Businesses: Construction Materials and
Engineered Structures -
Enhances Financial Flexibility to
Support Investment in Core Growth Platforms
Tracing its roots back to 1903 and marketed under the Arcosa Marine, Nabrico and Wintech brands, the Company’s barge business is a leading manufacturer of inland barges, fiberglass barge covers, winches and marine hardware with operations located along the
Carrillo continued, “Today’s announcement is a pivotal step in the strategic transformation and simplification of our portfolio. Upon completion of the divestiture, Arcosa will be fully focused on its key growth businesses - construction materials and engineered structures - both of which are well-aligned with long-term infrastructure and power market tailwinds in the
Carrillo concluded, “We have an active pipeline of investment opportunities, both organic and inorganic, and plan to prioritize the allocation of capital toward our high growth, high margin businesses.”
Wells Fargo served as financial advisor to Arcosa and
About Arcosa
About Wynnchurch
Cautionary Statements About Forward-Looking Information
Some statements in this release, which are not historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Arcosa’s estimates, expectations, beliefs, intentions or strategies for the future. Arcosa uses the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “intends,” “forecasts,” “may,” “will,” “should,” “guidance,” “outlook,” “strategy,” “plans,” “goal,” and similar expressions to identify these forward-looking statements. Forward-looking statements speak only as of the date of this release, and Arcosa expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, except as required by federal securities laws. Forward-looking statements are based on management’s current views and assumptions and involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations, including but not limited to assumptions, risks and uncertainties regarding the failure to successfully complete or integrate acquisitions, or divest any business, including Arcosa Marine, or failure to achieve the expected benefits of acquisitions or divestitures; market conditions and customer demand for Arcosa’s business products and services; the impact of Arcosa's level of indebtedness; the cyclical nature of, and seasonal or weather impact on, the industries in which Arcosa competes; competition and other competitive factors; governmental and regulatory factors; changing technologies; availability of growth opportunities; market recovery; ability to improve margins; the impact of inflation and costs of materials; impacts from the Inflation Reduction Act and One Big Beautiful Bill Act; the delivery or satisfaction of any backlog or firm orders; the impact of pandemics on Arcosa’s business; the impact of tariffs; and Arcosa’s ability to execute its long-term strategy, and such forward-looking statements are not guarantees of future performance. For further discussion of such risks and uncertainties, see “Risk Factors” and the “Forward-Looking Statements” section of “Management's Discussion and Analysis of Financial Condition and Results of Operations” in Arcosa's Form 10-K for the year ended
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Reconciliation of Arcosa Marine Adjusted EBITDA |
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(in millions) |
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(unaudited) |
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“EBITDA” is defined as net income plus interest, taxes, depreciation, depletion, and amortization. “Adjusted EBITDA” is defined as EBITDA adjusted for certain items that are not reflective of normal earnings. GAAP does not define EBITDA or Adjusted EBITDA and they should not be considered as alternatives to earnings measures defined by GAAP, including net income. We believe Adjusted EBITDA assists investors in comparing a company's performance on a consistent basis without regard to depreciation, depletion, amortization, and other items which can vary significantly depending on many factors. |
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Year Ended
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Arcosa Marine: |
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Operating profit |
$ |
60.8 |
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Add: Depreciation and amortization |
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7.5 |
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Arcosa Marine EBITDA |
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68.3 |
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Arcosa Marine Adjusted EBITDA |
$ |
68.3 |
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