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Knife River Acquires Oregon Company; Adds New Texas Aggregates Deposits.

MDU Resources Group Inc.'s subsidiary Knife River Corp. acquired Viesko RediMix, Inc., a ready-mix concrete supplier headquartered near Salem, Ore.

Viesko, which does business as Viesko Quality Concrete, is based in Wheatland, Ore., about 12 miles north of Salem and 40 miles southwest of Portland. The acquisition complements Knife River's existing Oregon operations and provides expansion for Knife River into the growing north Willamette Valley and Portland Metro markets. Financial details of the acquisition were not disclosed. MDU Resources anticipates the acquisition will be accretive to earnings per share.

Founded in 1948, Viesko is a vertically integrated business with ready-mix plants in Wheatland, Woodburn and McMinnville, Ore., and an aggregate operation in Keizer, Ore. Viesko's 60 team members join Knife River's growing Northwest Region, which last year acquired the operations of Molalla RediMix and Rock Products Inc., and Teevin & Fischer Quarry LLC.

"Knife River has a long and proud history in Oregon, and we believe it has a very bright future there as well," said David L. Goodin, president and CEO of MDU Resources. "Viesko also has a proud history of serving its Oregon customers. This is another good acquisition for Knife River. We welcome the Viesko employees to our team and look forward to continued success."

This acquisition is the sixth in the last 11 months for Knife River.

This acquisition is the sixth in the last 11 months for Knife River.

"As we continue to grow our business, we are looking for companies like Viesko: Well-run operations in growing markets where we have familiarity," said David C. Barney, president and CEO of Knife River. "We have a lot of experience in Oregon, and we're excited to further expand our footprint."

Knife River Corp. also acquired substantial additional aggregate deposits in Texas, which will augment existing company operations and enhance its ability to sell aggregates to third parties.

The 570 acres of land near Marble Falls, Texas, were purchased from Capitol Aggregates Inc. Financial details of the acquisition were not disclosed.

The "Honey Creek" property has access to a major rail line, and Knife River anticipates adding a rail loading facility to the site to transport aggregates to existing company locations in Waco, Bryan and Beaumont, Texas, as well as to third parties.

Knife River is pursuing the necessary permits to harvest the aggregates. Once permitted, Knife River expects this source will provide an approximately 40-year supply of high-quality aggregates to Knife River's existing Texas markets.

"This acquisition supports our strategy of focusing on vertical integration," said Goodin. "High-quality construction materials are centrally important to Knife River, and we believe that growing our aggregates position in Texas and owning more of our source rock is a good business decision."

FAST FACT

This acquisition is the sixth in the 11 months for Knife River.

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Title Annotation:IN THE KNOW
Publication:Rock Products
Geographic Code:1U9OR
Date:Apr 1, 2019
Words:476
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