SOUTH JORDAN — Headwaters Inc. on Wednesday said it has closed on its acquisition of certain assets of Southwest Concrete Products LP, a concrete block manufacturer based in south Texas.
The transaction totaled about $36 million, consisting of cash and the assumption of approximately $10 million in industrial revenue bonds. Headwaters also agreed to pay an earn-out to the sellers if the earnings before interest, taxes, depreciation and amortization of the acquired operations exceeds the current EBITDA for 2005.
Southwest Concrete had revenues of $31 million and EBITDA margins of approximately 16 percent for 2003.
SCP has operations in Alleyton, San Antonio and Houston, which complement Headwaters' similar operations in Dallas and east Texas. The combined block operations provide Eldorado Stone, Headwaters' manufactured stone company, a strategic partner for expansion of sales into the Texas market.