Colas, the US arm of French construction company Colas Group, has agreed to acquire Suit-Kote, a US-based road solutions company, for over $450m.
The acquisition involves purchasing all shares from the Suits family, which founded Suit-Kote in 1921. This transaction aligns with Colas’ strategy to expand its international footprint, specifically targeting Northern Europe, the US, Germany, and Australia.
Suit-Kote, based in New York State, specialises in liquid asphalt distribution and pavement preservation. The company operates from 21 locations across New York and Pennsylvania and employs over 750 people.
It generates an estimated $500m annually and deals in asphaltic materials through facilities located in New York, Pennsylvania, and Ontario, Canada.
Colas CEO Pierre Vanstoflegatte said: "This deal is a tangible illustration of our aim to invest in solid growth drivers that are as close as possible to the needs of the areas in which we operate.
"With this acquisition, Colas continues to build sustainable growth, driven by the commitment of its teams and the strength of its international network.”
The acquisition is expected to enhance Colas’ operations in the high-potential market of the north-eastern US by bolstering its presence in the bitumen distribution sector.
Colas US executive vice president John Harrington said: "Suit-Kote's regional roots, its expertise in bitumen processing and its model combining production, logistics and implementation will provide lasting support for our development in the US.”
The completion of the acquisition is anticipated by the end of next month. This is contingent on standard closing conditions, including regulatory approval under the Hart-Scott-Rodino Antitrust Improvements Act.
Colas Group has maintained a North American presence for over six decades with a workforce of 13,500 employees. By the end of 2024, North America accounted for 28% of the group’s revenue, positioning it as the company's second-largest market after France.
In a separate development last month, Colas’ subsidiary Colaska secured a contract with the US' Alaska Department of Transportation and Public Facilities. The project involves infrastructure improvements in Haines, Alaska.
Valued at over €52m ($60.20m), this project includes reconstructing and widening five miles of roadway and replacing a large bridge, among other enhancements aimed at improving safety and accessibility for the town's roughly 2,000 residents.
