Arcosa Inc. will acquire 75-year-old Jersey Shore business Stavola for $1.2 billion in cash.

Both the Dallas-based provider of infrastructure-related products and solutions as well as the target announced entering a definitive agreement Aug. 1. Under the deal, Arcosa will assume the construction materials business of Stavola Holding Corp. and its affiliated entities.

Founded in 1948, the aggregates-led and vertically integrated construction materials company boasts five hard rock natural aggregates quarries, 12 asphalt plants and three recycled aggregates sites. The move expands Arcosa’s footprint in the nation’s largest metropolitan statistical area.

“After much consideration by the Stavola families, it was decided that now is the right time to pass the business on to a company who shares our values and commitment to our employees and customers,” stated company President Joseph Stavola III. “We are excited for the future of the company as it continues to grow and remain a market leader,” added the leader of the third-generation family business.

Acorsa serves the construction, engineered structures and transportation markets. Operating for more than 85 years, the public company boasts $2.3 billion in revenues and more than 6,000 employees.

Stavola reported revenues of $283 million and adjusted EBITDA of $100 million (a 35% adjusted EBITDA margin) for the last 12 months ended June 30, according to Arcosa. The aggregates business contributed 56% to Stavola’s LTM Adjusted EBITDA. Arcosa expects the structure of the transaction to create attributable tax benefits with a net present value of approximately $125 million.

Team work

In an announcement posted to its website, Stavola said Arcosa will retain all the target’s existing employees. This will ensure “that the expertise and personalized service long associated with the Stavola family will remain intact.”

Regarding that specific quantity, Jeff Eller, spokesperson for Arcosa told NJBIZ in a comment, “It would not be appropriate to comment at this time. We hope to have further information when we close the transaction.”

Stavola has locations in Brick, Bound Brook, Flemington, Hillsborough, Howell, Lafayette, Manchester, Millstone, Newark, Old Bridge, Oldwick and Tinton Falls in New Jersey, as well as in Archbald and Good Spring, Pa.

Arcosa’s board of directors has already approved the deal and the company says it has obtained all necessary regulatory approvals. The acquisition expects to close in the fourth quarter.

A Sills Cummis & Gross PC team led by members Robert Schiappacasse and Frederic Tudor advised Stavola on the transaction.

“We here at Sills have had the privilege of representing the Stavola companies for many years,” commented Schiappacasse. “This transaction is representative of the many decades of dedication and hard work by the Stavola family and all of the employees and advisors who make up the Stavola companies, and we are proud to be part of that team.”

Barclays and Evercore served as financial advisors to Arcosa, while Kirkland & Ellis served as its legal advisor. J.P. Morgan, Bank of America Securities and Barclays provided committed financing to Arcosa in connection with the acquisition of Stavola. Baker Botts served as the company’s legal advisor on that funding.

“As we reflect on the journey of our company, we are filled with gratitude for the dedication and hard work of every one of our employees, past and present,” Stavola commented. “Your passion, resilience and determination have been instrumental in our collective success, and we are truly grateful for your contributions.”

Closing its announcement, the Stavola families paid homage to those that came before, “John W. Sr; Frank; Joseph C. Jr. and James J Sr. whose vision and dedication laid the foundation of the Stavola Cos. over 75 years ago. Their unwavering commitment to quality, integrity and community has left an indelible mark on the construction industry in New Jersey.”