Construction Partners, Inc. (ROAD – Free Report) or CPI recently announced that it acquired Pensacola, FL-based grading and sitework contractor J. Miller Construction Inc. to enhance its vertical integration of construction services in the rapidly growing Florida Panhandle markets.
Strategic Acquisitions to Drive Top-Line Performance
CPI is a vertically integrated civil infrastructure company that constructs and maintains roadways across five Southeastern states. The company focuses on inorganic growth strategy, particularly in the hot mix asphalt paving and construction industry.
On Oct 4, CPI acquired a Liberty, SC-based full-service hot-mix asphalt and paving company — King Asphalt, Inc. The financial terms of the transaction are not yet disclosed. Again on Sep 11, it acquired Albemarle, NC-based paving contractor — C.K. Earnhardt & Son, Incorporated. With this buyout, it added a hot-mix asphalt plant, personnel and equipment in the greater Charlotte metropolitan area.
In August, CPI acquired Good Hope Contracting Co., Inc. and related entities, situated in Cullman, AL, as well as Daurity Springs Quarry — a crushed stone and aggregates facility located near Goldston, NC. In June, it bought a Wilson-based grading and sitework contractor — PLT Construction Company, Inc.
During the first-quarter fiscal 2021, a subsidiary of CPI purchased four hot mix asphalt or HMA production and paving companies located in North Carolina. In the first six months of fiscal 2021, it took over a total of 13 HMA plants and more than 300 employees.
Since its inception through fiscal 2020, CPI has acquired and integrated 23 complementary businesses, which contributed significantly to its growth.
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Shares of the company have rallied 65.1% compared with the industry’s 18.1% growth in the past year. The solid price appreciation was mainly driven by its strategic buyouts and strong demand.
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