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Construction Partners Expands into Texas: Acquiring Lone Star Paving for $654 Million
Generated by AI AgentAinvest Technical Radar
Monday, Oct 21, 2024 3:45 pm ET1min read
Construction Partners, Inc. (CPI) has announced a significant expansion into the Texas market with the acquisition of Lone Star Paving for $654 million in cash and 3 million shares. This strategic move is expected to be immediately accretive to earnings and significantly accelerate CPI's ROAD-Map 2027 goals.
Lone Star Paving, a vertically integrated asphalt manufacturing and paving company, operates in attractive high-growth markets in central Texas. The acquisition adds 10 hot-mix asphalt plants, four aggregate facilities, and one liquid asphalt terminal to CPI's portfolio. This deal will generate an annualized run-rate contribution of $530 million of revenue and $120 million of Adjusted EBITDA in fiscal 2025.
The acquisition of Lone Star Paving's assets and facilities will affect CPI's revenue and earnings growth trajectory positively. The integration of Lone Star's operations into CPI's existing business model is expected to enhance operational efficiency and cost synergies. The addition of Lone Star's experienced management team and local expertise will benefit CPI's expansion into the Texas market. Furthermore, the acquisition of Lone Star's infrastructure assets will enhance CPI's operational efficiency and market dominance in Texas.
The acquisition of Lone Star Paving will also influence CPI's geographic diversification and future growth opportunities. By entering the Texas market, CPI gains access to three of the fastest-growing metropolitan areas in the country. This strategic move positions CPI to tap into the growing demand for infrastructure development in Texas, driven by state funding and the Infrastructure Investment and Jobs Act (IIJA).
In conclusion, CPI's acquisition of Lone Star Paving for $654 million is a transformative deal that will significantly expand the company's footprint into the Texas market. This strategic move is expected to be immediately accretive to earnings and accelerate CPI's ROAD-Map 2027 goals. The addition of Lone Star's infrastructure assets, experienced management team, and local expertise will enhance CPI's operational efficiency, cost synergies, and market dominance in Texas. The acquisition also positions CPI to tap into the growing demand for infrastructure development in Texas, driven by state funding and the IIJA.
Lone Star Paving, a vertically integrated asphalt manufacturing and paving company, operates in attractive high-growth markets in central Texas. The acquisition adds 10 hot-mix asphalt plants, four aggregate facilities, and one liquid asphalt terminal to CPI's portfolio. This deal will generate an annualized run-rate contribution of $530 million of revenue and $120 million of Adjusted EBITDA in fiscal 2025.
The acquisition of Lone Star Paving's assets and facilities will affect CPI's revenue and earnings growth trajectory positively. The integration of Lone Star's operations into CPI's existing business model is expected to enhance operational efficiency and cost synergies. The addition of Lone Star's experienced management team and local expertise will benefit CPI's expansion into the Texas market. Furthermore, the acquisition of Lone Star's infrastructure assets will enhance CPI's operational efficiency and market dominance in Texas.
The acquisition of Lone Star Paving will also influence CPI's geographic diversification and future growth opportunities. By entering the Texas market, CPI gains access to three of the fastest-growing metropolitan areas in the country. This strategic move positions CPI to tap into the growing demand for infrastructure development in Texas, driven by state funding and the Infrastructure Investment and Jobs Act (IIJA).
In conclusion, CPI's acquisition of Lone Star Paving for $654 million is a transformative deal that will significantly expand the company's footprint into the Texas market. This strategic move is expected to be immediately accretive to earnings and accelerate CPI's ROAD-Map 2027 goals. The addition of Lone Star's infrastructure assets, experienced management team, and local expertise will enhance CPI's operational efficiency, cost synergies, and market dominance in Texas. The acquisition also positions CPI to tap into the growing demand for infrastructure development in Texas, driven by state funding and the IIJA.
Ainvest Technical Radar
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