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VantaCore Partners LP Announces Louisiana Sand and Gravel Acquisition

2008-08-04 15:56:00

VantaCore Partners LP Announces Louisiana Sand and Gravel Acquisition

    NEW YORK, Aug. 4 /EMWNews/ -- VantaCore Partners LP ("VantaCore" or

the "Partnership") today announced the acquisition of Southern Aggregates

LLC ("Southern") whose assets consist of four sand and gravel operations

located near Baton Rouge, Louisiana. The acquisition is expected to be

immediately accretive to VantaCore's per unit distributable cash flow.

Southern, which has approximately 80 million tons of mineable sand and

gravel reserves, sold approximately 2.1 million tons of sand and gravel in

2007. Marc Dyess, who formed Southern in 2001 following a 30-year career

with Texas Industries, Inc. and Meridian Aggregates Company, will join

VantaCore as Southern's General Manager.

    "We are excited about the acquisition of Southern, which validates our

growth strategy for several reasons," said Colin Oerton, Chief Executive

Officer of VantaCore. "Firstly, Southern has extensive reserves and is an

important aggregate supplier to Baton Rouge and Lafayette, two of the

largest cities in Louisiana. Second, Marc Dyess, with his extensive

aggregate experience and Louisiana market knowledge will add significant

depth to the VantaCore team. His strategy of finding, developing and

marketing sand and gravel reserves has resulted in strong growth in sales

and profits at Southern. Third, this acquisition expands VantaCore's

geographic footprint while Southern's strong marketing capabilities will

complement our existing deep operational expertise."

    $68.9 million in equity and debt financing commitments were provided to

partially finance the acquisition, to refinance existing debt at VantaCore

and for general working capital purposes. $29.9 million in equity

consisting of common units was provided by Kayne Anderson Energy

Development Company (NYSE: KED) and Tortoise Capital Resource Corporation

(NYSE: TTO). $39.0 million in first and second lien debt financing was

committed by Wells Fargo Foothill, part of Wells Fargo & Company (NYSE:

WFC), and Gladstone Capital Corporation (Nasdaq: GLAD).

    VantaCore is also pleased to announce the appointment of Robert L.

Brown, CPA, to the position of Corporate Controller. Mr. Brown, who was

most recently Director of Accounting Operations and Assistant Controller at

Towers Perrin, brings extensive accounting and finance experience from both

private and public companies to the VantaCore team. Earlier in his career,

Mr. Brown worked in public accounting for PricewaterhouseCoopers.

    About VantaCore Partners LP

    VantaCore is a non-traded, private limited partnership focused on

acquiring competitively advantaged aggregate businesses in the domestic

U.S. market. Its operations consist of an integrated limestone quarry (with

permitted surface reserves in excess of 40 million tons) and dock facility,

two asphalt plants and a commercial asphalt lay down business located in

Clarksville, Tennessee. VantaCore's interest in retaining local company

management, its financial structuring flexibility and seller sensitivity,

facilitated the Partnership's ability to make this purchase and management

expects that this will enable VantaCore to grow through acquisitions in the


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Blake Masterson

Freelance Writer, Journalist and Father of 5

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