MDU Resources Announces Board of Directors for Independent Construction Materials Company
MDU Resources Group, Inc. (NYSE: MDU) has announced the board of directors for its construction materials subsidiary, Knife River Holding Company. This announcement comes as the planned separation of the subsidiary into an independent, publicly traded company is expected to be completed in the second quarter of 2023.
The anticipated board of directors for Knife River will consist of six directors, with five of them being independent directors. The new board members are expected to bring a wealth of experience from various industries, including construction materials, finance, and investment.
Karen B. Fagg, former vice president of DOWL HKM and former chair, CEO, and majority owner of HKM Engineering Inc., is expected to chair Knife River’s board. German Carmona Alvarez, global president of applied intelligence of Wood PLC, and formerly a senior vice president and global digital practice leader of NEORIS, and executive vice president of finance, information technology, and shared services at CEMEX, is another board member. Thomas Everist, president and chair of The Everist Co., an investment and land development business that until 2017 was a construction materials company, and a former director of Raven Industries Inc., is also joining Knife River’s board. Patricia L. Moss, formerly vice chair, president, and CEO of Cascade Bancorp and Bank of the Cascades, and a director of First Interstate BancSystem Inc., is the fourth director expected to move from MDU Resources’ board of directors to Knife River’s board.
In addition to these experienced individuals, Knife River’s board will also welcome two new directors: William J. Sandbrook, former chairman, president, and CEO of U.S. Concrete, and Brian R. Gray, president and CEO of Knife River.
“We are excited that we have talented, experienced directors ready to strategically guide Knife River as it becomes a stand-alone, publicly traded company, and look forward to the addition of Bill Sandbrook, with his deep knowledge of the construction materials industry,” said Karen B. Fagg, who is expected to become chair of the board of Knife River.
The planned separation of Knife River from MDU Resources is intended to optimize value for stockholders and create two pure-play, publicly traded companies. Under the planned separation, MDU Resources’ stockholders will retain their current shares of MDU Resources stock and receive a pro rata distribution of 80.1% or more of outstanding shares of Knife River stock. The separation is expected to be tax-free to MDU Resources and its stockholders for federal income tax purposes.
Dennis W. Johnson, chair of the board of MDU Resources, said, “We are pleased to have the future board of directors identified for Knife River as we continue making progress toward the anticipated separation, which is expected to optimize value for shareholders.”
The board of directors plays a crucial role in any company, and the new members joining Knife River’s board are expected to bring a wealth of experience and knowledge to the table. Each of the directors has had significant experience in their respective industries and has been chosen for their unique skill sets and expertise.
Karen B. Fagg, who is expected to become the chair of Knife River’s board, has significant experience in the engineering industry. Her leadership experience and knowledge of the industry will be invaluable to Knife River as it becomes an independent company. German Carmona Alvarez has an extensive background in finance and information technology, while Thomas Everist has experience in both investment and land development. Patricia L. Moss brings her experience in finance and banking to the table.
The two new directors joining Knife River’s board also bring significant expertise to the company. William J. Sandbrook has deep knowledge of the construction materials industry, having previously served
as chairman, president, and CEO of U.S. Concrete. Brian R. Gray, the current president and CEO of Knife River, has been instrumental in the growth of the company and has helped to position it as a leading construction materials company in the industry.
The announcement of the board of directors for Knife River comes as the planned separation from MDU Resources moves closer to completion. The separation is expected to create two pure-play, publicly traded companies, with Knife River focusing solely on the construction materials industry. The separation is also expected to optimize value for stockholders and provide them with an opportunity to invest in a pure-play company.
The planned separation is subject to certain customary conditions, including final approval by MDU Resources’ board of directors and the SEC’s declaration that the Form 10 registration statement is effective. MDU Resources has provided additional information about Knife River’s anticipated directors on its website at www.mdu.com/about-us/knife-board and within the amended Form 10 registration statement for Knife River, which is available on the SEC website at www.sec.gov and on MDU Resources’ website at https://investor.mdu.com/financials/sec-filings.
In conclusion, the announcement of the board of directors for Knife River marks an important milestone in the planned separation of the company from MDU Resources. The new board members bring a wealth of experience and knowledge to the company, and their expertise is expected to be invaluable as Knife River becomes an independent, publicly traded company. The separation is expected to optimize value for stockholders and create two pure-play, publicly traded companies, providing investors with an opportunity to invest in a company solely focused on the construction materials industry.