Arcosa to acquire Ameron from NOV Inc. for $180M in cash

Arcosa (ACA) announced that it has entered into a definitive agreement to acquire Ameron Pole Products or Ameron, from NOV (NOV) for $180M in cash. Founded in 1970, Ameron is a leading manufacturer of highly engineered, premium concrete and steel poles for a broad range of infrastructure applications, including lighting, traffic, electric distribution, and small-cell telecom. For the year ended December 31, Ameron had revenues of approximately $94M Mand Adjusted EBITDA of approximately $20M, implying a 9.0x EBITDA acquisition multiple. Commenting on the transaction, Antonio Carrillo, Arcosa’s President and Chief Executive Officer, noted, “As we continue to effectively deploy capital into Arcosa’s growth businesses, we believe Ameron is an excellent strategic fit. It provides entry into the complementary steel and concrete lighting pole market while expanding our product offerings in traffic and telecom. ..The Company expects to fund the $180M purchase price with a combination of cash on-hand and borrowings available under its revolving credit facility. The transaction, which has been approved by the Company’s Board of Directors, is subject to customary closing conditions and regulatory provisions under the Hart-Scott-Rodino Act and is expected to close in the second quarter of 2024.