Construction Partners, Inc. (NASDAQ: ROAD) has announced the acquisition of PRI of East Tennessee, Inc. and Pavement Restorations, Inc., collectively known as PRI. The acquisition brings nearly 300 employees to CPI and expands the company's infrastructure business in Tennessee. The combined PRI organization will be led by Jon Hargett as president and Greg Ailshie as senior vice president. CPI's President and CEO, Fred J. (Jule) Smith, III, expressed enthusiasm for the acquisition, highlighting the growth opportunities in Tennessee driven by strong economic growth, favorable demographic trends, and a healthy transportation funding program.
CPI operates in local markets across the Sunbelt, including Alabama, Florida, Georgia, North Carolina, Oklahoma, South Carolina, Tennessee, and Texas. The company focuses on the construction, repair, and maintenance of surface infrastructure, with publicly funded projects comprising the majority of its business. This includes work on local and state roadways, interstate highways, airport runways, and bridges, as well as private sector projects such as paving and sitework for various developments.
With the acquisition, CPI now spans the length of Tennessee, from Knoxville in the east to the greater Memphis metro area in the west. This expansion complements CPI's pre-existing Tennessee operations, which include three hot-mix asphalt plants in the Nashville metro area. The addition of PRI's specialized pavement preservation business is expected to enhance CPI's ability to meet the growing demand for innovative solutions in the pavement preservation industry.
The press release does not provide specific financial metrics or comparisons to previous periods. Following these announcements, the company's shares moved 5.7%, and are now trading at a price of $86.84. For the full picture, make sure to review Construction's 8-K report.
