Civil builder Building Companions has entered into an settlement to purchase Lone Star Paving for $654 million in money and three million shares, the Dothan, Alabama-based infrastructure agency introduced Oct. 21. At the day prior to this’s shut, that places the acquisition’s whole worth at $878 million.
Lone Star, headquartered in Austin, Texas, is a vertically built-in asphalt manufacturing and paving firm working in high-growth markets in Central Texas, with 10 hot-mix asphalt crops, 4 mixture services and a liquid asphalt terminal, based on the discharge. The acquisition will likely be instantly accretive to earnings upon closing and is anticipated to generate an annualized run-rate contribution of $530 million in income in fiscal 12 months 2025.
Lone Star offers asphalt and associated transportation building companies to public and business prospects primarily within the Austin, San Antonio and Temple-Killeen metropolitan areas, three of the nation’s fastest-growing markets, per the discharge.
“We’re excited to announce this transformational acquisition so as to add an excellent platform firm as we enter our seventh state,” Building Companions President and CEO Fred J. Smith III mentioned within the launch. “Lone Star is a market chief throughout a number of high-growth metropolitan areas in central Texas, with a deeply skilled and efficient administration crew and a tradition of operational excellence.”
Building Companions’ acquisition of Lone Star aligns with its established development technique of getting into new states by shopping for a platform firm with an skilled native administration crew, repute for high quality and alternatives for development, per the discharge.
Analysts with Baird Fairness Analysis’s Industrial Providers crew additionally praised the transfer.
“We like [Construction Partners’] acquisition of Lone Star Paving (LSP), the biggest in firm historical past, and its entrance into the big and rising Texas markets,” they mentioned in an Oct. 21 investor word.
