Knife River Corp. came to terms on an agreement to acquire Strata Corp., a construction materials and contracting services provider in North Dakota and northwest Minnesota.
The reported purchase price is $454 million.
Founded in 1910, Strata is an aggregate-based, vertically integrated company with more than 75 aggregate locations, extensive reserves and rail assets to take those reserves to market. Strata has 28 ready-mixed concrete plants, three asphalt plants and a contracting services division that specializes in asphalt paving and concrete construction.
Headquartered in Grand Forks, North Dakota, Strata will provide infill growth for Knife River’s central segment.
“Strata is respected among its peers and in its communities, and is well-known for its strong culture and expertise,” says Brian Gray, president and CEO of Knife River. “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.’”
Knife River expects the deal to close in the first half of 2025.
“We believe this acquisition is a prime example of our Competitive EDGE strategy to profitably grow our business,” Gray says. “We expect Strata to be accretive to Knife River’s adjusted EBITDA margin within the first year. Strata’s high-quality assets allow us to expand our service territory within a region we know well. We believe this is a great long-term fit for us.”
Strata was founded as Bradshaw Gravel Supply. Strata chairman and CEO James Bradshaw oversaw much of the company’s growth during his 46 years as president.
“It’s not easy building a family business, and it’s even harder coming to the point where you are ready to step away from it,” Bradshaw says. “I believe there is a great fit between Strata and Knife River. Both companies are strongly aligned with our cultures of putting people first and operating with integrity. We want what is best for our team and their future, and we believe that is with Knife River.”
