Coal-, steel-seasoned investor WL Ross enters concrete and aggregates
- Written by Concrete News
Sources: WL Ross & Co. LLC, New York City; CP staff
Permian Basin Materials, LLC (PBM), a newly formed affiliate of private equity firm WL Ross & Co., has acquired majority stakes in Texas’ Crockett County Mining, Ltd., Highland Concrete Co. and Wallach Concrete, Inc. WL Ross-managed funds will own 80 percent of PBM as the three business’ existing shareholders maintain a combined 20 percent stake.
The companies will continue to operate under their brands, which position PBM with 16 ready mixed production and 10 owned or leased aggregate sites in the Permian Basin, spanning west Texas and eastern New Mexico. Collective operational capabilities will allow the new partnership to better serve the marketplace and its customers, principals note.
“We are excited about bringing together these three businesses to form a significant construction materials platform in an area of the country we expect will experience dynamic growth,” says WL Ross Managing Director Stephen Toy. “By partnering with existing shareholders, we believe the platform is well positioned to capitalize on regional growth while driving efficiencies from optimizing the footprint of the separate entities.”
Robert Wallach notes that his family looks forward to involvement in the growth and opportunities head for PBM. The concrete and aggregate venture follows investment and consolidation activities through which WL Ross formed the International Steel Group and International Coal Group, subsequently acquired by Arcelor Mittal and Arch Coal.