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MDU Resources Announces Acquisition of Young Brothers
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01/16/2005
BISMARCK, N.D.--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."
The information in this release includes certain forward-looking statements, including statements by the president and chief executive officer of Knife River Corporation and statements concerning accretive earnings per share, within the meaning of Section 21E of the Securities Exchange Act of 1934. Although the company believes that its expectations are based on reasonable assumptions, actual results may differ materially. Important factors that could cause actual results to differ materially from those in the forward-looking statements include the effects of competition and the ability to effectively integrate acquired operations. For further discussion, refer to the MDU Resources' most recent Form 10-Q at Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations - Risk Factors and Cautionary Statements that May Affect Future Results.
MDU Resources Group, Inc. provides energy, value-added natural resource products and related services that are essential to our country's energy, transportation and communication infrastructure. MDU Resources includes electric and natural gas utilities, a natural gas pipeline, utility services, natural gas and oil production, construction materials and mining, energy services, and domestic and international independent power production. For more information about MDU Resources, see the company's Web site at www.mdu.com or contact the Investor Relations Department at [email protected]. Knife River Corporation mines aggregates and markets crushed stone, sand, gravel and related construction materials, including ready-mixed concrete, cement, asphalt and other value-added products, as well as performing integrated construction services, in the north central and western United States, including Alaska and Hawaii. For more information about Knife River Corporation, visit the company's Web site at www.kniferiver.com.
