Natural Resource Partners LP (NRP) signed an agreement to acquire VantaCore Partners LP, a privately held company specializing in the construction materials industry, for $205 million. The deal is expected to close in the fourth quarter this year.
According to a press release, VantaCore was formed in 2006 and has integrated seven companies in its time. The company is headquartered in Philadelphia, and a group of investors own VantaCore, which operates three quarries, six sand-and-gravel plants, two asphalt plants and a marine terminal. Its operations are located in Pennsylvania, West Virginia, Tennessee, Kentucky and Louisiana. NRP, meanwhile, owns interests in aggregates, coal and industrial minerals, as well as oil and gas across the United States.
VantaCore will operate as a wholly owned subsidiary of NRP. VantaCore CEO Colin Oerton and COO Perry Donahoo will continue to manage the subsidiary.
“With this acquisition, we are continuing down the path of diversifying NRP, building on our recent track record of smart, well-considered additions to our natural resource properties,” says Wyatt Hogan, NRP’s executive vice president. Upon completion of the acquisition, NRP will have invested over $550 million since January 2013 in non-coal-related businesses and, as we demonstrated with our second-quarter results, those acquisitions are contributing significant additional cash flows to NRP.”
According to the U.S. Geological Survey, VantaCore is 41st on its Top 100 U.S. crushed-stone-producing companies list that ranks aggregate producers by volumes produced.
