Construction Partners (NASDAQ: ROAD) has reached a definitive agreement to acquire Asphalt Inc., operating as Lone Star Paving, based in Austin, Texas. As per the agreement, Construction Partners will purchase all outstanding membership units of Lone Star for a total of $654 million in cash alongside 3 million shares of Construction Partners' Class A common stock. Lone Star Paving operates as a vertically integrated asphalt production and paving entity, managing 10 hot-mix asphalt plants, four aggregate facilities, and one liquid asphalt terminal that supports its comprehensive operations.
Construction Partners indicated that, once finalized, the acquisition will immediately enhance earnings. The company expects this transaction to contribute an annualized run-rate of $530 million in revenue and an adjusted EBITDA of $120 million by the fiscal year 2025.
