Construction Partners, Inc. Completes Acquisitions in Alabama and Georgia

Rhea-AI Summary

Construction Partners, Inc. (NASDAQ: ROAD) has acquired SJ&L General Contractor, LLC and Littlefield Construction Company, expanding its services and adding crews & equipment in existing growth markets. The acquisitions aim to enhance service capabilities and offer turnkey services in the greater Huntsville metro area and the Waycross market.

Market Research Analyst

Construction Partners, Inc.'s recent acquisitions of SJ&L General Contractor, LLC and Littlefield Construction Company represent strategic moves to bolster its service offerings and market presence in the southeastern United States. These acquisitions are particularly significant as they not only expand CPI's geographical footprint but also enhance its capabilities in hot-mix asphalt and sitework, which are crucial components of the infrastructure sector.

The integration of these new acquisitions is expected to provide CPI with a competitive edge, especially in the rapidly growing Huntsville metro area and along the Interstate 65 corridor. By offering turnkey services that cover a wider range of the construction value chain, CPI can attract larger and more diverse project opportunities, potentially leading to increased revenue streams.

Furthermore, the strategic location of the acquired companies near key logistical hubs like the Port of Brunswick can facilitate CPI's reach into new markets, driving long-term growth. The addition of valuable crews and equipment should also translate into operational efficiencies and cost savings over time, as CPI can leverage economies of scale and reduce reliance on external contractors.

Financial Analyst

The acquisitions by Construction Partners, Inc. are likely to have a positive impact on its financial performance. By expanding into existing growth markets, CPI is poised to capitalize on the existing demand and potentially increase its market share. The mention of the acquisitions being in line with CPI's growth strategy suggests a well-thought-out approach to scaling operations and enhancing shareholder value.

Investors should monitor CPI's upcoming financial statements for indications of how these acquisitions are contributing to the top and bottom lines. It will be important to assess the integration costs and how quickly CPI can realize synergies from the combined operations. A successful integration could result in improved profit margins and a stronger balance sheet, making CPI an attractive proposition in the infrastructure and construction sector.

Additionally, the ability to offer a full range of infrastructure services might lead to CPI securing more comprehensive contracts, which can provide more stable and predictable revenue streams. However, investors should also be aware of the risks associated with acquisitions, such as the potential for unforeseen integration challenges and market fluctuations that could affect the anticipated growth in these regions.

Economist

The expansion of CPI into new markets through acquisitions is a reflection of broader economic trends, such as urbanization and increased infrastructure spending. The focus on areas experiencing significant growth, like the Huntsville metro area, aligns with economic indicators that suggest a rising demand for infrastructure development.

From an economic perspective, CPI's strategic acquisitions could contribute to local economies by creating jobs and stimulating related industries. The enhanced service offerings and increased operational capacity can have a multiplier effect, potentially leading to more investment in these areas. This can be particularly impactful in regions with strategic importance, like those near the Port of Brunswick, which are essential for trade and logistics.

However, CPI's growth strategy also needs to account for economic cycles and potential shifts in government infrastructure spending. While the current outlook may be favorable, long-term success will depend on CPI's ability to adapt to changing economic conditions and maintain financial stability amidst market volatility.

CPI Enhances Presence in Existing Growth Markets: Expands Services, Adds Crews & Equipment

DOTHAN, Ala., Jan. 3, 2024 /PRNewswire/ -- Construction Partners, Inc. (NASDAQ: ROAD) ("CPI" or the "Company"), a vertically integrated civil infrastructure company specializing in the construction and maintenance of roadways across six southeastern states, today announced that it has acquired SJ&L General Contractor, LLC, a hot-mix asphalt and sitework company headquartered in Huntsville, Alabama, and Littlefield Construction Company, a soil base, surface treatment and sitework company headquartered in Waycross, Georgia.

Fred J. (Jule) Smith, III, the Company's President and Chief Executive Officer, said, "A key component of our growth strategy is to actively expand service capabilities within existing markets.  Both the SJ&L and Littlefield acquisitions expand our services offerings in existing markets while also adding valuable crews and equipment."

Smith continued, "The greater Huntsville metro area and Interstate 65 corridor continue to experience tremendous growth, and we look forward to integrating the SJ&L team with our existing operations at our Alabama platform company, Wiregrass Construction Company. As a combined organization, we can now offer turnkey services spanning the construction value chain on both private and public project opportunities within this market. Likewise, our Georgia platform company, The Scruggs Company, entered the Waycross market just a few months ago through the establishment of a greenfield hot-mix asphalt plant. Now having acquired Littlefield, we are even better positioned to capitalize on a robust surface treatment market and to offer a full range of infrastructure services from a strategic location that can reach from the Port of Brunswick on the Atlantic coast into south-central Georgia. We are pleased to expand both of these crucial growth markets and proud to welcome the employees of SJ&L and Littlefield into our continually growing CPI family." 

About Construction Partners, Inc.

Construction Partners, Inc. is a vertically integrated civil infrastructure company operating across six southeastern states. Supported by its hot-mix asphalt plants, aggregate facilities and liquid asphalt terminals, the Company focuses on the construction, repair and maintenance of surface infrastructure. Publicly funded projects make up the majority of its business and include local and state roadways, interstate highways, airport runways and bridges. The company also performs private sector projects that include paving and sitework for office and industrial parks, shopping centers, local businesses and residential developments. To learn more, visit www.constructionpartners.net.

Cautionary Note Regarding Forward-Looking Statements

Certain statements contained herein that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and 21E of the Securities Exchange Act of 1934. These statements may be identified by the use of words such as "seek" "continue," "estimate," "predict," "potential," "targeting," "could," "might," "may," "will," "expect," "should," "anticipate," "intend," "project," "outlook," "believe," "plan" and similar expressions or their negative. The forward-looking statements contained in this press release include, without limitation, statements relating to the benefits of business acquisitions and the expected results of the acquired businesses. These and other forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Important factors that could cause actual results to differ materially from those expressed in the forward-looking statements are set forth in the Company's most recent Annual Report on Form 10-K, its subsequent Quarterly Reports on Form 10-Q, its Current Reports on Form 8-K and other reports the Company files with the SEC. Forward-looking statements speak only as of the date they are made. The Company assumes no obligation to update forward-looking statements to reflect actual results, subsequent events, or circumstances or other changes affecting such statements except to the extent required by applicable law.

Contact:

Rick Black
Dennard Lascar Investor Relations
ROAD@DennardLascar.com
(713) 529-6600

View original content:https://www.prnewswire.com/news-releases/construction-partners-inc-completes-acquisitions-in-alabama-and-georgia-302025480.html

SOURCE Construction Partners, Inc.

FAQ

What did Construction Partners, Inc. (NASDAQ: ROAD) announce?

Construction Partners, Inc. (NASDAQ: ROAD) announced the acquisition of SJ&L General Contractor, LLC and Littlefield Construction Company, expanding its services and adding crews & equipment in existing growth markets.

What are the key components of Construction Partners, Inc.'s growth strategy?

The key components of Construction Partners, Inc.'s growth strategy include actively expanding service capabilities within existing markets and offering turnkey services on private and public project opportunities.

What markets are being targeted by Construction Partners, Inc. (NASDAQ: ROAD)?

Construction Partners, Inc. (NASDAQ: ROAD) is targeting the greater Huntsville metro area and the Waycross market for expansion of services and infrastructure offerings.

What companies were acquired by Construction Partners, Inc. (NASDAQ: ROAD)?

Construction Partners, Inc. (NASDAQ: ROAD) acquired SJ&L General Contractor, LLC and Littlefield Construction Company.

What is the significance of the acquisitions for Construction Partners, Inc. (NASDAQ: ROAD)?

The acquisitions aim to enhance service capabilities and offer turnkey services in existing growth markets, adding valuable crews and equipment to the company's operations.