Knife River Corporation Completes $454 Mln Acquisition Of Strata Corporation

(RTTNews) - Knife River Corporation (KNF) Monday announced that it has acquired Strata Corporation, a construction materials and contracting services provider in North Dakota and northwestern Minnesota, for $454 million—approximately nine times Strata's projected 2025 EBITDA. This acquisition strengthens Knife River's market position and operational capabilities.

Strata, a vertically integrated firm with over 900 peak-season employees, brings:

Aggregate reserves exceeding 30 years, with 3 million tons sold in 2024.

Extensive logistics assets, including a fleet of trucks, seven locomotives, and 400+ railcars across eight rail yards.

28 ready-mix plants with 120 trucks, specializing in high-spec concrete.

Three asphalt plants serving public infrastructure projects.

A contracting division focused on paving and concrete construction.

Strata President Paddy Murphy will now lead Knife River's North Dakota operations. CEO Brian Gray emphasized the acquisition's strategic value, citing footprint expansion and enhanced profitability. Expected to boost Knife River's adjusted EBITDA margin within a year, the deal was financed through available cash and a $500M Term Loan B. Non-core Strata assets were sold to maintain financial alignment.

Knife River will provide updated 2025 financial guidance in its first quarter earnings report.

KNF is currently trading at $87.22 or 0.99% lower on the NYSE.