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Stavola in Tinton Falls sells construction material business to Texas company for $1.2B

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Stavola in Tinton Falls sells construction material business to Texas company for .2B

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Stavola Holding Corp. plans to sell its construction materials business to a Dallas-based company for $1.2 billion in cash, the company said, in a deal that would provide an exit ramp for a family that has owned the business for 75 years.

The buyer, Arcosa Inc., said the acquisition would give the publicly traded company access to the nation’s largest market — New York and New Jersey — that is underpinned by a steady demand for infrastructure investment. It expects the sale to be completed in the fourth quarter.

“Stavola brings an experienced management team, a reputation for strong customer service, and a successful track record,” Antonio Carrillo, Arcosa’s president and chief executive officer, said in a statement.

Stavola has been a household name at the Jersey Shore since four brothers — John, Frank, Joseph and James Stavola — founded the construction company in 1948. Its road projects have included work on the Garden State Parkway, Route 36, and the New Jersey Turnpike.  

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Stavola plans to sell its asphalt, recycling and contracting divisions, whose operations include eight asphalt plants, five quarries and three recycling plants.

Joseph C. Stavola III, the company’s president, couldn’t be reached for comment. In a statement, the company said Arcosa planned to retain all existing employees to ensure expertise and customer service would remain intact.

“After much consideration by the Stavola families, it was decided that now is the right time to pass the business on to a company who shares our values and commitment to our employees and customers,” Joseph Stavola III, part of the family’s third generation to work in the business, said in a statement. “We are excited for the future of the company as it continues to grow and remain a market leader.”

Jeff Eller, a spokesperson for Arcosa, said it would be inappropriate to comment about the company’s plans, and he hoped to have more information when the sale closes.

Arcosa provides construction, energy and transportation services. It has 6,075 employees and $2.3 billion in annual revenue. And it has been a publicly traded company since it was spun off by its holding company, Trinity Industries, in 2018.

Since then, Arcosa has tried to reduce the cyclical nature of the business through acquisitions and divestments, said Carrillo, the CEO.

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Stavola’s construction business, which generated $238 million in revenue, would give Arcosa access to a new region, the company told investors.

The announcement “was a surprise (especially in terms of size of transaction),” although evidence (Arcosa) continues to move rapidly to evolve/simplify its portfolio,” a research report by D.A. Davidson & Co. analyst Brent Thielman said.

Michael L. Diamond is a business reporter for the Asbury Park Press who has been writing about the New Jersey economy, housing market and health care industry since 1999. He can be reached at mdiamond@gannettnj.com.

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