Back to top

Image: Shutterstock

Construction Partners (ROAD) Buys J. Miller, Expands Reach

Read MoreHide Full Article

Construction Partners, Inc. (ROAD - Free Report) or CPI recently announced that it acquired Pensacola, FL-based grading and sitework contractor J. Miller Construction Inc. to enhance its vertical integration of construction services in the rapidly growing Florida Panhandle markets.

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 inorganic growth strategy, particularly in the hot mix asphalt paving and construction industry.

On Oct 4, CPI acquired a Liberty, SC-based full-service hot-mix asphalt and paving company — King Asphalt, Inc. The financial terms of the transaction are not yet disclosed. Again on Sep 11, it acquired Albemarle, NC-based paving contractor — C.K. Earnhardt & Son, Incorporated. With this buyout, it added a hot-mix asphalt plant, personnel and equipment in the greater Charlotte metropolitan area.

In August, CPI acquired Good Hope Contracting Co., Inc. and related entities, situated in Cullman, AL, as well as Daurity Springs Quarry — a crushed stone and aggregates facility located near Goldston, NC. In June, it bought a Wilson-based grading and sitework contractor — PLT Construction Company, Inc.

During the first-quarter fiscal 2021, a subsidiary of CPI purchased four hot mix asphalt or HMA production and paving companies located in North Carolina. In the first six months of fiscal 2021, it took over a total of 13 HMA plants and more than 300 employees.

Since its inception through fiscal 2020, CPI has acquired and integrated 23 complementary businesses, which contributed significantly to its growth.

Zacks Investment ResearchImage Source: Zacks Investment Research

Shares of the company have rallied 65.1% compared with the industry’s 18.1% growth in the past year. The solid price appreciation was mainly driven by its strategic buyouts and strong demand.

Zacks Rank & Other Key Picks

Construction Partners — sharing space with Masco Corporation (MAS - Free Report) in the same industry — currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some other top-ranked stocks in the same space are CRH PLC (CRH - Free Report) and TopBuild Corp. (BLD - Free Report) , each carrying a Zacks Rank of 2 at present. Both companies’ earnings are likely to increase 112.7% and 47.1%, respectively, in 2021.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Masco Corporation (MAS) - free report >>

TopBuild Corp. (BLD) - free report >>

CRH PLC (CRH) - free report >>

Construction Partners, Inc. (ROAD) - free report >>