Streamlining its focus on regulated utilities and energy infrastructure services, MDU Resources spun off a construction materials subsidiary, Knife River Corp., into a standalone public company. (Source: Shutterstock.com)
Energy delivery and infrastructure company MDU Resources Group Inc. has spun off its construction materials segment, Knife River Corp.
Bismarck, North Dakota-based MDU Resources operates subsidiaries in electric and natural gas distribution, pipeline transport, construction materials and construction services, according to regulatory filings.
In order to streamline its business focus on regulated utilities and infrastructure services, MDU Resources revealed plans to spin off Knife River in August 2022.
As a result of the spinoff, Knife River became an independent public company trading on the New York Stock Exchange under the ticker symbol “KNF.” MDU Resources shares continue to trade on the NYSE under the ticker symbol “MDU.”
“This is an exciting day for MDU Resources and Knife River as completing the spinoff of Knife River brings us closer to our goal of becoming two best-in-class, pure-play companies,” said MDU President and CEO David L. Goodin in a June 1 news release. “We expect this strategic shift and spinoff of Knife River to provide long-term value for our stockholders.”
MDU Resources shareholders received a pro rata distribution of approximately 90% of the outstanding shares of Knife River common stock to effect the spinoff.
Knife River produces and delivers aggregates and markets crushed stone, sand, gravel, ready-mix concrete, asphalt and other related construction materials in the western, central and southern U.S. The company generated EBITDA of $293 million in 2021.
Knife River will remain headquartered in Bismarck as a standalone public company.
RELATED: MDU Resources Subsidiary Completes North Bakken Expansion
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