Construction Partners, Inc. Completes North Carolina Acquisition

Rhea-AI Summary

Construction Partners (NASDAQ: ROAD) has acquired Hudson Paving, expanding its operations in the Sandhills region of North Carolina. The acquisition includes a hot-mix asphalt plant and associated crews and equipment, enhancing CPI's service capabilities in the Pinehurst and Southern Pines areas. Fred J. Smith, III, CEO of CPI, highlighted the strategic fit of this bolt-on acquisition for their North Carolina platform company, Fred Smith Company. The integration aims to capitalize on the region's rapid growth and aligns culturally with CPI's values, welcoming new employees into the fold.

Positive

• Acquisition of Hudson Paving enhances service capabilities in a rapidly growing market.
• Addition of a hot-mix asphalt plant in Rockingham boosts CPI’s operational capacity.
• Strategic fit with Fred Smith Company, CPI's North Carolina platform, improves regional coverage.
• Cultural alignment with Hudson Paving may facilitate smoother integration.

Negative

• Potential integration challenges with new employees and equipment.
• Short-term costs associated with the acquisition might affect financials.
• Market conditions in the Sandhills region may change, impacting demand.

News Market Reaction

-3.33%

1 alert

-3.33% News Effect

On the day this news was published, ROAD declined 3.33%, reflecting a moderate negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Company Adds Hot-Mix Asphalt Plant in Sandhills Area

DOTHAN, Ala., June 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 Hudson Paving, Inc., headquartered in Rockingham, North Carolina. The transaction adds a hot-mix asphalt plant and related crews and equipment serving the Sandhills region of North Carolina.

Fred J. (Jule) Smith, III, the Company's President and Chief Executive Officer, said, "This transaction is a model bolt-on acquisition for Fred Smith Company, our North Carolina platform company. From our existing plant in Carthage and new plant in Rockingham, we are able to fully serve the rapidly growing Pinehurst and Southern Pines market area. We believe the Hudson team and culture fit well with ours, and we welcome our new employees into our 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 a business acquisition and the expected results of the acquired business. 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-north-carolina-acquisition-302162348.html

SOURCE Construction Partners, Inc.

FAQ

What did Construction Partners (ROAD) acquire in North Carolina?

Construction Partners acquired Hudson Paving, including a hot-mix asphalt plant and related crews and equipment in the Sandhills region.

When did Construction Partners complete the acquisition of Hudson Paving?

Construction Partners completed the acquisition on June 3, 2024.

How does the acquisition of Hudson Paving benefit Construction Partners?

The acquisition enhances CPI's service capabilities in the growing Pinehurst and Southern Pines areas.

What is the strategic importance of the Hudson Paving acquisition for Construction Partners?

It strengthens CPI's North Carolina platform, Fred Smith Company, enabling better regional coverage.

What challenges might Construction Partners face after acquiring Hudson Paving?

Potential integration challenges and short-term acquisition costs could affect financials.