Granite Announces Acquisition of Lehman-Roberts Company and Memphis Stone & Gravel Company
December 05 2023 - 9:00AM
Business Wire
- Acquisition expands Granite’s footprint and creates a new
platform for growth in the attractive greater Memphis metropolitan
market
- Revising 2024 financial targets to reflect the acquisition
Granite Construction Incorporated (NYSE: GVA) today announced
the acquisition of Lehman-Roberts Company (“LRC”) and Memphis Stone
& Gravel Company (“MSG”), longstanding asphalt paving and
asphalt and aggregates producers and suppliers. This acquisition
expands Granite’s footprint and creates a new growth platform for
Granite in the attractive Memphis metropolitan market. 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. The companies’ senior leadership team, led by Pat Nelson,
will remain in place to manage and develop the business as part of
the Granite group of companies.
"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 and Chief Executive Officer.
Larkin continued, “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%.”
MSG and LRC President, Pat Nelson, stated, “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.”
The acquisition was financed through a new term loan of $150
million maturing on June 2, 2027, with the remainder funded through
Granite’s existing revolver and cash on hand.
The Company does not provide a reconciliation of forward-looking
adjusted EBITDA margin to the most directly comparable
forward-looking GAAP measure of net income attributable to Granite
Construction Incorporated because the Company cannot predict with a
reasonable degree of certainty and without unreasonable efforts
certain excluded items that are inherently uncertain and depend on
various factors. For these reasons, we are unable to assess the
probable significance of the unavailable information.
About Granite
Granite is America’s Infrastructure Company™. Incorporated since
1922, Granite (NYSE:GVA) is one of the largest diversified
construction and construction materials companies in the United
States as well as a full-suite civil construction provider.
Granite’s Code of Conduct and strong Core Values guide the Company
and its employees to uphold the highest ethical standards. Granite
is an industry leader in safety and an award-winning firm in
quality and sustainability. For more information, visit the Granite
website, graniteconstruction.com, and connect with Granite on
LinkedIn, X, Facebook, and Instagram.
Forward-looking Statements
Any statements contained in this news release that are not based
on historical facts, including statements regarding future events,
occurrences, opportunities, circumstances, activities, performance,
growth, demand, strategic plans, shareholder value, outcomes,
outlook, that LRC and MSG senior leadership will remain in place to
manage and develop the business, estimated reserves, that the
acquisition creates a new platform for growth, that LRC and MSG
will continue to provide customers with highest quality aggregates
and service, 2024 revenue targets and 2024 adjusted EBITDA margin
targets and results constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements are identified by words such
as “future,” “outlook,” “believes,” “expects,” “estimates,”
“plans,” “may,” “will,” “could,” “continue,” "create" and the
negatives thereof or other comparable terminology or by the context
in which they are made. These forward-looking statements are
estimates reflecting the best judgment of senior management and
reflect our current expectations regarding future events,
occurrences, opportunities, circumstances, activities, performance,
growth, demand, strategic plans, shareholder value, outcomes,
outlook, that LRC and MSG senior leadership will remain in place to
manage and develop the business, estimated reserves, that the
acquisition creates a new platform for growth, and that LRC and MSG
will continue to provide customers with highest quality aggregates
and service, 2024 revenue targets and 2024 adjusted EBITDA margin
targets and results. These expectations may or may not be realized.
Some of these expectations may be based on beliefs, assumptions or
estimates that may prove to be incorrect. In addition, our business
and operations involve numerous risks and uncertainties, many of
which are beyond our control, which could result in our
expectations not being realized or otherwise materially affect our
business, financial condition, results of operations, cash flows
and liquidity. Such risks and uncertainties include, but are not
limited to, those described in greater detail in our filings with
the Securities and Exchange Commission, particularly those
described in our Annual Report on Form 10-K and Quarterly Reports
on Form 10-Q.
Due to the inherent risks and uncertainties associated with our
forward-looking statements, the reader is cautioned not to place
undue reliance on them. The reader is also cautioned that the
forward-looking statements contained herein speak only as of the
date of this news release and, except as required by law; we
undertake no obligation to revise or update any forward-looking
statements for any reason.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231201688110/en/
Investors Wenjun Xu, 831-761-7861
Or
Media Erin Kuhlman, 831-768-4111
Granite Construction (NYSE:GVA)
Historical Stock Chart
From Apr 2024 to May 2024
Granite Construction (NYSE:GVA)
Historical Stock Chart
From May 2023 to May 2024