Knife River Acquires Wyoming Construction Materials Business

Rhea-AI Summary

MDU Resources Group announced the acquisition of McMurry Ready-Mix Co., expanding Knife River Corporation's footprint in Wyoming. The acquisition includes nearly 100 million tons of aggregate reserves and a ready-mix plant in Casper, enhancing operational capacity in central Wyoming. This marks Knife River's seventh acquisition in three years, indicating strong growth in the construction materials sector. MDU's CEO noted record earnings for Knife River in 2020, supporting the acquisition's strategic importance in driving future growth.

Positive

• Acquisition enhances operational capacity in Wyoming with 100 million tons of aggregate reserves.
• Supports growth strategy; seventh acquisition in three years.
• MDU reports record earnings for Knife River in 2020.

Negative

• None.

BISMARCK, N.D., Dec. 16, 2020 /PRNewswire/ -- Knife River Corporation announced today it has expanded its Intermountain Region footprint by acquiring the assets of McMurry Ready-Mix Co., an aggregates and concrete supplier based in Casper, Wyoming. Knife River is the construction materials subsidiary of MDU Resources Group, Inc. (NYSE: MDU) and operates in 15 states.

McMurry's estimated aggregate reserves of nearly 100 million tons are strategically positioned throughout central Wyoming, including along interstates 25 and 80. The company also has a ready-mix plant on the west side of Casper, complementing Knife River's east Casper location. Knife River's Intermountain operations also include Cheyenne and Laramie, Wyoming, as well as locations throughout Montana and Idaho.

"We have enjoyed steady growth in central and southeastern Wyoming for 20 years, and we expect this acquisition to help us support our customers for the next 20 and well beyond," said David C. Barney, Knife River president and CEO. "Casper has been a good market for us. We know and respect the McMurry team, and it is great to have their employees join Knife River."

McMurry's aggregates operations will do business as Knife River Materials and will continue their focus on supplying third-party customers as well as Knife River's own operations. The ready-mix plant and employees will join Knife River's existing construction operations in Casper.

Financial details of the transaction were not disclosed. This is Knife River's seventh acquisition in the last three years.

"Knife River is having another strong year – posting higher earnings through the first nine months of this year than any first three quarters in company history," said David L. Goodin, president and CEO of MDU Resources. "Aggregates-rich acquisitions such as McMurry support our ongoing growth strategy, and we continue to pursue other growth opportunities at Knife River as well."

Forward-Looking Statements
Information in this release includes certain forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this release, including an aggregate reserve estimate and statements by the president and CEO of MDU Resources and the president and CEO of Knife River, are expressed in good faith and are believed by the company to have a reasonable basis. Nonetheless, actual results may differ materially from the projected results expressed in the forward-looking statements. For a discussion of important factors that could cause actual results to differ materially from those expressed in the forward-looking statements, refer to Item 1A – Risk Factors in MDU Resources' most recent Form 10-K and Form 10-Q.

About Knife River
Knife River Corporation mines aggregates and markets crushed stone, sand, gravel and related construction materials, including ready-mix concrete, cement, asphalt, liquid asphalt and other value-added products. It also performs integrated construction services. For more information about Knife River, visit www.kniferiver.com.  

About MDU Resources
MDU Resources Group, Inc., a member of the S&P MidCap 400 index and the S&P High-Yield Dividend Aristocrats index, is Building a Strong America^® by providing essential products and services through its regulated energy delivery and construction materials and services businesses. For more information about MDU Resources, visit www.mdu.com or contact the Investor Relations Department at investor@mduresources.com.

Financial Contact:
Jason Vollmer, vice president and chief financial officer, 701-530-1755

Media Contacts: 
Tony Spilde, Knife River communications, 541-693-5949
Laura Lueder, MDU Resources communications, 701-530-1095

View original content to download multimedia:http://www.prnewswire.com/news-releases/knife-river-acquires-wyoming-construction-materials-business-301194559.html

SOURCE MDU Resources Group, Inc.

FAQ

What is the recent acquisition made by MDU Resources?

MDU Resources has acquired McMurry Ready-Mix Co., enhancing Knife River's operations in Wyoming.

How does the acquisition of McMurry Ready-Mix Co. impact MDU's business?

The acquisition is expected to strengthen MDU's operational capacity and support ongoing growth in the construction materials sector.

What are the estimated reserves acquired from McMurry Ready-Mix Co.?

McMurry Ready-Mix Co. has nearly 100 million tons of aggregate reserves.

How many acquisitions has Knife River made in the past three years?

Knife River has made seven acquisitions in the last three years.

What financial performance did MDU report for Knife River in 2020?

MDU reported record earnings for Knife River through the first nine months of 2020.