Company: ACA
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001739445-25-000135
Chunk: 32

Company: Arcosa, Inc.
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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 of five hard rock natural aggregates quarries, twelve asphalt plants, and three recycled aggregates sites. The Stavola acquisition expanded our platform into the nation's largest MSA with industry-leading financial attributes. During the nine months ended September 30, 2025, the Company received $17.6 million from escrow related to purchase price adjustments in accordance with the terms of the purchase agreement for the Stavola acquisition, which reduced the total purchase price consideration.The Stavola acquisition was recorded as a business combination based on a valuation of assets acquired and liabilities assumed at their acquisition date fair values using unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets and liabilities ("Level 3" inputs). The following table details the final purchase price allocation:(in millions)Cash$0.7 Receivables, net of allowance69.2 Inventories23.5 Other current assets2.6 Property, plant, and equipment, including mineral reserves742.6 Goodwill339.3 Intangibles40.4 Other assets23.2 Accounts payable(18.0)Accrued liabilities(2.6)Advance billings(0.8)Other liabilities(28.1)Total net assets acquired$1,192.0 Goodwill represents the excess of the purchase consideration over the valuation of the net assets acquired. The acquired goodwill, which has been assigned to the Construction Products segment, is tax-deductible and primarily attributable to Stavola's market position and existing workforce. The acquired intangibles include beneficial use rights, recycling permits, and the Stavola trade name, which have a useful life of 34 years, 20 years, and 5 years, respectively.On the acquisition date, the Company also entered into three separate lease agreements for properties owned by the sellers. These lease agreements were accounted for separately from the Stavola acquisition, and the corresponding right of use assets and lease liabilities of $12.3 million and $12.6 million, respectively, are reflected in the Consolidated Balance Sheet as of September 30, 2025.Revenues and operating profit included in the Consolidated Statement of Operations were $102.6 million and $32.3 million, respectively, for the three months ended September 30, 2025, and $219.3 million and $44.2 million, respectively, for the nine months ended September 30, 2025. Non-re