The Company has announced an agreement to acquire Allied Paving Contractors, Inc., a paving and heavy site construction contractor based in Atlanta.
The acquisition deal is valued at approximately $120 million, with the payment comprising around $62 million in cash and Class A Common Stock valued at about $58 million.
The cash portion will be funded using the company's existing cash reserves, and the stock issued will be subject to a six-month lock-up period.
The transaction is anticipated to close in early October, bringing significant strategic benefits to the Company.
Allied Paving Contractors generates approximately $108 million in annual revenue with a 20.3 percent Adjusted EBITDA margin.
This acquisition is expected to enhance the Company's paving capabilities in Atlanta, allowing for improved margin capture and reduced project timelines in the region.
"This was one of the strongest growth quarters in Cardinal's history," said Jeremy Spivey, Chairman and Chief Executive Officer. "We delivered record revenue, our backlog climbed to an all-time high, and today we announced Allied Paving, our ninth acquisition since 2021, following Piedmont Pipe in Charlotte in May. Keeping pace with this level of customer demand, and investing to capture the opportunity it represents, cost more than we expected this quarter, resulting in margins below plan."