Construction Partners (ROAD) Acquires PLT, Boosts Presence
In a bid to enhance the vertical integration of construction services in eastern North Carolina, Construction Partners, Inc. ROAD or CPI has acquired a Wilson-based grading and sitework contractor — PLT Construction Company, Inc.
As an experienced public roadway and sitework contractor, PLT Construction serves many of the markets acquired by CPI in first-quarter fiscal 2021. In addition to the recent acquisition, CPI added much-needed construction equipment to drive organic growth in these new markets in eastern North Carolina.
CPI's President and Chief Executive Officer, Fred J. (Jule) Smith, III, said, "For several years, the team at PLT Construction Company has been successful partnering with the Rose Brothers organization we acquired last October on a variety of projects, and now, we will have the opportunity to continue their shared legacy of high-quality work in this part of the state as a single, unified organization."
Strategic Acquisitions to Drive Top-Line Performance
CPI is a vertically integrated civil infrastructure company that constructs and maintains roadways across five southeastern states. The company focuses on acquisition growth strategy, particularly in the hot mix asphalt paving and construction industry.
During the fiscal first quarter, a subsidiary of CPI purchased four hot mix asphalt or HMA production and paving companies located in North Carolina. On Oct 8, 2020, it acquired a business located in Carthage; on Oct 30, it bought Ahoskie-based HMA company; on Dec 3, it purchased a Raleigh-based HMA business; and on Dec 18, it snapped up a company engaged in HMA in Kitty Hawk. The acquired businesses added thirteen HMA plants in central and eastern North Carolina, providing CPI with access to additional markets and expanding its footprint in the state. In the first six months of fiscal 2021, it acquired a total of 13 HMA plants and more than 300 employees.
Since inception through fiscal 2020, CPI have acquired and integrated 23 complementary businesses, which have contributed significantly to its growth.
Image Source: Zacks Investment Research
Coming to price performance, the company’s shares have rallied 14.3%, outperforming the industry’s 4.4% growth in the past three months. The solid price appreciation was mainly driven by the company’s strategic buyouts and strong demand.
Zacks Rank
Construction Partners — which shares space with Advanced Drainage Systems, Inc. WMS, Quanex Building Products Corporation NX and TopBuild Corp. BLD in the same space — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advanced Drainage Systems, Inc. (WMS) : Free Stock Analysis Report
Quanex Building Products Corporation (NX) : Free Stock Analysis Report
TopBuild Corp. (BLD) : Free Stock Analysis Report
Construction Partners, Inc. (ROAD) : Free Stock Analysis Report
To read this article on Zacks.com click here.
