February 14, 2017
New Enterprise Stone & Lime Co., Inc. announced that it has acquired the core assets of Berks Products Corp. and EJB Paving & Materials Co., which consist of two aggregate plants, two hot-mix asphalt plants, four ready-mixed concrete plants, and a construction supply center in Berks County, Pa., for a total purchase price of approximately $46.3 million.
The facilities, located between some of the company’s existing locations, expand its operating footprint and market scope into the Reading, Pa. market. New Enterprise plans to use the shared service center and the scalability of its infrastructure to integrate the acquired facilities into its existing operations and expects to be selling, producing, and accounting for all products almost immediately.
“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,” says Paul Detwiler, III, Chief Executive Officer of New Enterprise Stone & Lime Co., Inc., in a press release. “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.”