Construction Partners, a civil infrastructure company specialising in the construction and maintenance of roadways across five Southeastern states, has completed two acquisitions in Florida – Liquid Asphalt Terminal and Asphalt, and Ready-Mixed Concrete Company – for the aggregate purchase price of approximately USD19 million, paid entirely from cash on hand.
CPI expects to make customary capital improvements for both acquired businesses, but does not anticipate these expenditures to be material.
CPI acquired a liquid asphalt terminal located in Panama City, Florida. The acquisition is part of CPI’s vertical integration strategy, providing the ability to supply liquid asphalt to a number of its hot mix asphalt plants in the southern portion of the Company’s footprint, including Florida, Alabama and Georgia. CPI will use this terminal to receive, store and process liquid asphalt to be distributed to its hot mix asphalt plants. CPI currently anticipates that the terminal will primarily service its own plants, with minimal third-party sales.
CPI also acquired Asphalt and Ready-Mixed Concrete Compan, a hot mix asphalt and ready-mixed concrete business located in Okeechobee, Florida. This transaction enables CPI to serve new markets in south central Florida through an expanded geographic presence in the state.
“We are pleased to complete these two acquisitions that are consistent with our strategies of vertical integration and service market expansion in high-growth areas of the southeastern United States,” says Charles E Owens, President and Chief Executive Officer of CPI. “We will expedite our integration efforts and expect operational and service-related synergies to modestly benefit our results of operations in fiscal 2019.”
