Construction Partners, Inc. Completes North Carolina Acquisition

Rhea-AI Summary

Construction Partners, Inc. (NASDAQ: ROAD) has acquired Riley Paving, Inc., an asphalt contractor in North Carolina. This acquisition enhances ROAD's operations by adding four hot-mix asphalt plants in central North Carolina, facilitating market access and expansion. With this deal, the company now owns 39 hot-mix asphalt plants across five southeastern states. The acquisition aligns with ROAD's strategy of integrating complementary businesses to boost regional capabilities and foster infrastructure improvements.

Positive

• Acquisition of Riley Paving adds four hot-mix asphalt plants, enhancing operational footprint in North Carolina.
• Increased capacity with now 39 hot-mix asphalt plants across five states.
• Alignment with growth strategy focusing on complementary businesses and regional synergies.

Negative

• None.

DOTHAN, Ala., Oct. 8, 2020 /PRNewswire/ -- Construction Partners, Inc. (NASDAQ: ROAD) (the "Company"), a vertically integrated civil infrastructure company specializing in the construction and maintenance of roadways across five southeastern states, today announced that it has acquired Riley Paving, Inc., an asphalt and paving contractor based in Carthage, North Carolina. Among other things, the acquisition adds four hot-mix asphalt plants in central North Carolina, providing the Company with access to additional markets and expanding its footprint in the state.

"We are pleased to announce today's acquisition," said Fred J. (Jule) Smith, III, the Company's Chief Operating Officer. "Our growth strategy focuses on identifying and integrating complementary businesses with geographic and cultural synergies, which this acquisition exemplifies. We now operate 39 hot-mix asphalt plants that represent distinct local markets for CPI across our southeastern footprint."

Jason Williams, President of Fred Smith Company, the Company's North Carolina subsidiary, added, "We welcome our more than 70 new employees and look forward to continuing to improve North Carolina's transportation infrastructure together."

About Construction Partners, Inc.

Construction Partners, Inc. is a vertically integrated civil infrastructure company operating across five southeastern states, with 39 hot-mix asphalt plants, nine aggregate facilities and one liquid asphalt terminal. Publicly funded projects make up the majority of its business and include local and state roadways, interstate highways, airport runways and bridges. The majority of the Company's public projects are maintenance-related. Private sector projects 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 acquisitions 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:http://www.prnewswire.com/news-releases/construction-partners-inc-completes-north-carolina-acquisition-301148774.html

SOURCE Construction Partners, Inc.

FAQ

What is the purpose of Construction Partners' acquisition of Riley Paving?

The acquisition aims to enhance market access and operational capacity in North Carolina by adding four hot-mix asphalt plants.

How does the acquisition impact Construction Partners' operations in North Carolina?

The acquisition expands their footprint in North Carolina and increases their total number of hot-mix asphalt plants to 39.

What are the key benefits of the acquisition for Construction Partners, ticker ROAD?

Key benefits include expanded market reach, increased production capacity, and alignment with their growth strategy of integrating complementary businesses.

How many employees did Construction Partners gain through this acquisition?

Construction Partners welcomed over 70 new employees as a result of the acquisition.

What markets will Construction Partners gain access to from the acquisition?

The acquisition provides access to additional markets in central North Carolina.