MDU Resources (MDU)

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MDU acquires Texas companies!

MDU Resources Announces Acquisition of Young Brothers
11 Jul 2003, 3:17pm ET
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BISMARCK, N.D.--(BUSINESS WIRE)--July 11, 2003--MDU Resources Group, Inc. (NYSE:MDU) announced the acquisition of Young Brothers, Inc., Contractors and the affiliated companies of Young Contractors, Inc., Young Materials Corp. and Brazos Motor Transport, Inc., privately held ready-mixed concrete, asphalt and construction materials and services companies serving East Central Texas. These companies will become subsidiaries of Knife River Corporation, the construction materials and mining subsidiary of MDU Resources. Young Brothers was acquired with a combination of shares of MDU Resources common stock and cash. Other financial details of the transaction were not disclosed. MDU Resources anticipates that the acquisition will be accretive to earnings per share.
Young Brothers, with headquarters in Waco, Texas, and additional offices in Bryan, Texas, is a leading construction materials company in its market. The company supplies and places ready-mixed concrete, asphalt, crushed stone and sand and gravel for highways, subdivisions and a variety of other projects in 27 central Texas counties, including the metropolitan areas of Waco, Bryan/College Station, Temple, Killeen and Tyler.
F.M. Young, B.W. Young and R.T. Young started Young Brothers in 1946 as an aggregate and earthmoving business. In 2002, the company had annual revenues of about $87 million. The company employs approximately 650 people during peak construction season.
"This acquisition broadens our geographic reach in the United States and gives us a large, leading operation in a Sun Belt state," said Terry Hildestad, president and chief executive officer of Knife River Corporation. "Young Brothers' operations will be a nice fit with the rest of our construction materials companies."
Hildestad said the company will continue to be operated as Young Brothers. F.M. Young will continue to serve as the president. "We're happy to be joining Knife River Corporation," said Young. "We're excited about the opportunity to collaborate with so many other companies that have a reputation for high-quality products and services, as well as a reputation for operating with integrity."