Rock Products

MAR 2017

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www.rockproducts.com ROCK products • March 2017 • 13 FAST FACT The strategic acqui- sitions consist of two aggregate plants, two hot mix asphalt plants, four ready mixed concrete plants, and a construc- tion supply center. New Enterprise Stone & Lime Co. Inc. (NESL) acquired the core assets of Berks Products Corp. and EJB Paving & Materi- als Co. The strategic acquisitions consist of two aggregate plants, two hot mix asphalt plants, four ready mixed concrete plants, and a construction supply center in Berks County, Pa. The facilities are ideally situated between NESL's existing Lehigh Valley and Lancaster, Pa., locations, expand- ing its operating footprint and market scope into the Reading, Pa., market. NESL believes both businesses are high- ly-regarded in the community, with outstanding assets and attractive oper- ating characteristics. The total purchase price of the two acquisitions was approximately $46.3 million, net of a working capital adjust- ment, funded using existing cash and bank facilities. NESL will leverage its new shared service center and the scalability of its infrastructure to seamlessly inte- grate the nine acquired facilities into the broader NESL operations. NESL expects to be selling, producing and accounting for all products almost immediately with minimal additional SG&A, outside of the costs associated with maintaining a portion of the sales- force of the acquired businesses. On the heels of NESL's strong third quar- ter 2017 earnings, the company advised that it believes fiscal year ended Feb. 28, New Enterprise Stone & Lime Completes Strategic Acquisitions 2018, will be the fifth consecutive year of expanding operating profit. The company expects that both acquisitions will provide significant synergies to NESL's primary business next fiscal year and believes the incre- mental profit from the Berks Products and EJB Paving & Materials acquisi- tions will more than offset any lost mclanahan.com VISIT US AT BOOTH C31027!

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