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MDU Resources Group Acquires Tri-City Paving, Inc.

Jun 04, 2018

MDU Resources Group, Inc. (NYSE: MDU) announced today it has acquired Tri-City Paving, Inc., a general contractor and aggregate, asphalt and ready-mix concrete supplier headquartered in Little Falls, Minnesota.

Tri-City will become part of Knife River Corporation, the construction materials subsidiary of MDU Resources. Financial details of the acquisition were not disclosed. MDU Resources anticipates the acquisition will be accretive to earnings per share. Tri-City is an established Central Minnesota construction company whose service area, strong aggregate supply and vertically integrated business model make it a strategic fit for Knife River.

“For 70 years, Tri-City has provided high-quality construction materials and contracting services to support growth in Central Minnesota,” said David C. Barney, Knife River president and CEO. “We are excited to welcome the 150 Tri-City employees to Knife River and are pleased to be expanding our operations in Minnesota. Tri-City’s service territory in the Little Falls/Brainerd area helps to connect our Central and Northern Minnesota locations.”

In addition to its aggregate reserves and related processing equipment, Tri-City operates three ready-mix plants, three portable asphalt plants and a dust-control operation. It will become part of Knife River’s Central Minnesota Division, which is headquartered in Sauk Rapids.

“Strategic acquisitions like this one are what built our construction materials business, and with two deals closed in the last six weeks, it is good to be in growth mode again at Knife River,” said David L. Goodin, president and CEO of MDU Resources Group. “We look forward to continued success in Minnesota and are optimistic about additional growth opportunities at Knife River and our other businesses.”

Forward-Looking Statements
The information in this release includes certain forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934. Although the company believes its expectations are based on reasonable assumptions, actual results may differ materially. 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 the company’s website at 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, see the company’s website at www.mdu.com or contact the Investor Relations Department at investor@mduresources.com.

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

Media:
Tony Spilde, senior public relations representative, 701-530-1061
Laura Lueder, manager of communications and public relations, 701-530-1095