Arcosa to sell storage tank business to Black Diamond Capital

April 27, 2022 By    

Arcosa Inc., a Dallas-based provider of infrastructure-related products and solutions, agreed to sell its storage tank business to Black Diamond Capital Management for $275 million in cash, subject to customary transaction adjustments.

The storage tank business, marketed under the Arcosa Tank and TATSA brands, manufactures steel pressure tanks for the storage and transportation of propane, ammonia and other gases serving the residential, commercial, energy and agricultural markets, with operations in the U.S. and Mexico. Reported within the company’s engineered structures segment, revenues totaled about $200 million in 2021, according to a news release.

Following the transaction, Arcosa will continue to have a manufacturing platform in Mexico, primarily supporting its engineered structures segment with the flexibility to manufacture other products, the company says.

“[The] announcement represents a significant milestone in the advancement of our long-term vision to reduce the complexity of Arcosa’s overall portfolio and focus on strategic growth in select markets where we can achieve a sustainable competitive advantage,” says Antonio Carrillo, president and CEO of Arcosa.

Carrillo says Arcosa worked to improve the margins of its storage tank business, which was unprofitable in 2018.

“Our team has done a fantastic job introducing lean initiatives and reinvigorating growth in this business, creating an attractive platform for future capital investment,” he says. “I am confident in their continued success under the focused ownership of Black Diamond.”

The transaction is expected to close in the second half of the year, subject to regulatory approvals in the U.S. and Mexico and other customary closing conditions.

Arcosa says it intends to invest in its construction products platform as it continues to shift its business mix toward less cyclical, higher-margin growth opportunities.

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Brian Richesson is the editor in chief of LP Gas Magazine. Contact him at or 216-706-3748.

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