Granite Construction has acquired Lehman-Roberts Company (LRC) and Memphis Stone & Gravel Company (MSG), asphalt paving and asphalt and aggregates producers and suppliers. The move expands the company's footprint in the Southeast.
LRC operates seven strategically located asphalt plants serving the greater Memphis area and northern Mississippi.
MSG operates three sand and gravel mines, with an additional mine under construction. MSG has exclusive rights to an estimated 57 million tons of proven and probable reserves and 24 million tons of measured and indicated reserves.
"We are very excited to complete this acquisition of an outstanding materials-led business that expands our footprint in the Southeast. We believe their business model aligns with our previously disclosed strategy to grow our business by focusing on developing home markets that are served by highly successful companies of scale with great leadership,” said Kyle Larkin, Granite president/CEO, in a statement.
“With the completion of the acquisition, we are increasing our 2024 revenue target to a revenue range of $3.8 billion to $4.0 billion. While we expect the acquisition to be accretive to EBITDA, we are maintaining our 2024 adjusted EBITDA margin range of 9% to 11%,” said Larkin.
“We are excited to join Granite as we enter the next phase of our evolution. We look forward to continuing to provide our many valued customers with the highest quality aggregates and service for many years to come,” said Pat Nelson, MSG and LRC President, said in a statement.
Source: Granite Construction
