H.I.G. Capital News
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H.I.G. Capital Announces the Sale of ACG Materials
MIAMI – December 6, 2018 – H.I.G. Capital (“H.I.G.”), a leading global private equity investment firm with $30 billion of equity capital under management, is pleased to announce the sale of its portfolio company, ACG Materials (“ACG” or the “Company”) for approximately $315 million, to Arcosa, Inc. (NYSE: ACA) (“Arcosa”), a manufacturer of infrastructure-related products and services.
ACG Materials, based in Norman, Oklahoma, mines, processes, and distributes industrial minerals and aggregates including gypsum, anhydrite, limestone, sand, gravel, basalt and downstream food, pharmaceutical, prill and plaster products across a diverse set of end markets including building products, energy, infrastructure, and agriculture.
H.I.G. recapitalized the Company in December 2012, and through the completion of nine acquisitions and the development of six greenfield mines, subsequently grew ACG from five mines and two production facilities in Oklahoma into a highly diversified operator of 24 mines and 5 production facilities across 9 states and provinces. During H.I.G.’s ownership, the Company also made significant investments in management, IT infrastructure, sales & marketing, manufacturing capabilities, and capacity.
Paul Harrington, ACG’s CEO, said, “H.I.G. has been a great partner, as they have been very supportive helping to transform ACG into a professionally managed, diversified, national platform with exciting growth potential. We are excited to continue this next chapter with Arcosa, whose platform and resources will help us realize the considerable opportunities ahead.”
Keval Patel, Managing Director at H.I.G. Capital, commented, “It has been a pleasure working with Paul and the ACG management team. Their strategic vision and consistent execution has resulted in an outstanding investment outcome for management and shareholders, including the Company’s founder Russ Harrison. We are confident that ACG will continue to build on its record of success and impressive growth under the Arcosa umbrella.”
About ACG Materials
ACG Materials, based in Norman, Oklahoma, mines, processes, and distributes industrial minerals and aggregates including gypsum, anhydrite, limestone, sand, gravel, basalt and downstream food, pharmaceutical, prill and plaster products across a diverse set of end markets including building products, energy, infrastructure and agriculture. The Company operates out of 24 active mines and 5 production facilities throughout Oklahoma, Texas, Florida, Kansas, Missouri, Nevada, Washington, and British Columbia. ACG Materials was founded as Harrison Gypsum, LLC in 1955. For more information, visit www.acgmaterials.com.
About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with $30 billion of equity capital under management.* Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Bogotá, Rio de Janeiro and São Paulo, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/ value-added approach. For more information, please refer to the H.I.G. website at www.higcapital.com.
* Based on total capital commitments managed by H.I.G. Capital and affiliates.