CPI to Acquire Lone Star Paving in Austin, Texas for $654 Million in Cash and 3 Million Shares
Transaction Details
Construction Partners, Inc. (CPI) has announced its plans to acquire Lone Star Paving in Austin, Texas for a total sum of $654 million in cash and 3 million shares. This move is part of CPI’s strategic growth plan to expand its presence in the civil infrastructure sector.
Impact on CPI
This acquisition is expected to be immediately accretive to CPI’s earnings upon closing, which is projected to take place in Q1 of FY25. The transaction is considered transformational for CPI, as it is anticipated to significantly accelerate the company’s ROAD-Map 2027 goals.
Assets Acquired
As part of the deal, CPI will gain ownership of 10 hot-mix asphalt plants, four aggregate facilities, and one liquid asphalt terminal. These assets will further enhance CPI’s capabilities in road construction and maintenance.
Conference Call
CPI will be hosting a conference call today at 9:00 AM Eastern to discuss further details regarding the acquisition of Lone Star Paving.
DOTHAN, Ala. , Oct. 21, 2024 /PRNewswire/ — Construction Partners, Inc. (NASDAQ: ROAD)
How Will This Acquisition Impact You?
As a consumer, this acquisition may result in improved road construction and maintenance services in the southeastern states where CPI operates. This could lead to smoother and more efficient transportation systems in your area.
Global Impact of the Acquisition
On a larger scale, this acquisition may contribute to the overall growth and development of the civil infrastructure industry. It could also create new opportunities for collaboration and innovation within the sector, potentially benefiting communities worldwide.
Conclusion
The acquisition of Lone Star Paving by CPI represents a significant milestone in the company’s growth strategy. With the addition of key assets and capabilities, CPI is poised to further solidify its position as a leader in the civil infrastructure sector. This move not only benefits the company and its stakeholders but also has the potential to drive positive change on a broader scale.
