News
December 23, 2024

Knife River to Acquire Strata Corporation in $454M Deal

Caroline Raffetto

Knife River Corporation has entered a definitive agreement to acquire Strata Corporation, a leading construction materials and contracting services provider in North Dakota and northwestern Minnesota, for $454 million. This acquisition is set to strengthen Knife River’s presence in the region, expanding its operations and capabilities.

“It is a great success story – growing from a single gravel operation into a leading supplier of construction materials that employs over 900 team members during the peak season. We look forward to completing the transaction and welcoming the Strata team to the Life at Knife,” said Knife River President and CEO Brian Gray.

Founded in 1910, Strata is a vertically integrated company with over 75 aggregate locations and a robust mix of ready-mix plants, asphalt plants, and contracting services. This acquisition will provide Knife River with infill growth and an expanded service territory.

“Strata is respected among its peers and in its communities, and is well-known for its strong culture and expertise,” Gray added. “We expect Strata to be accretive to Knife River’s Adj. EBITDA margin within the first year.”

The deal, expected to close in the first half of 2025, will be financed through cash on hand and long-term debt issuance. Strata's founder, James Bradshaw, expressed confidence in the deal: “It’s not easy building a family business... we believe that is with Knife River.”

This acquisition aligns with Knife River’s growth strategy, with a focus on expanding their operations and enhancing their capabilities across the region.

News
December 23, 2024

Knife River to Acquire Strata Corporation in $454M Deal

Caroline Raffetto
Announcements
North Dakota

Knife River Corporation has entered a definitive agreement to acquire Strata Corporation, a leading construction materials and contracting services provider in North Dakota and northwestern Minnesota, for $454 million. This acquisition is set to strengthen Knife River’s presence in the region, expanding its operations and capabilities.

“It is a great success story – growing from a single gravel operation into a leading supplier of construction materials that employs over 900 team members during the peak season. We look forward to completing the transaction and welcoming the Strata team to the Life at Knife,” said Knife River President and CEO Brian Gray.

Founded in 1910, Strata is a vertically integrated company with over 75 aggregate locations and a robust mix of ready-mix plants, asphalt plants, and contracting services. This acquisition will provide Knife River with infill growth and an expanded service territory.

“Strata is respected among its peers and in its communities, and is well-known for its strong culture and expertise,” Gray added. “We expect Strata to be accretive to Knife River’s Adj. EBITDA margin within the first year.”

The deal, expected to close in the first half of 2025, will be financed through cash on hand and long-term debt issuance. Strata's founder, James Bradshaw, expressed confidence in the deal: “It’s not easy building a family business... we believe that is with Knife River.”

This acquisition aligns with Knife River’s growth strategy, with a focus on expanding their operations and enhancing their capabilities across the region.