Posted on August 14, 2024
Granite Construction Incorporated GVA has acquired Dickerson & Bowen, Inc. (D&B), a leading regional aggregates, asphalt, and highway construction company serving Central and Southern Mississippi, in cash.
This bolt-on buyout is highly complementary to GVA’s prior acquisition of Lehman-Roberts Company and Memphis Stone & Gravel (LRC and MSG). This materials-focused business also builds on Granite’s footprint in the Southeast, serving as a growth platform in the Memphis metropolitan and Mississippi markets.
As the construction industry continues to evolve, Granite’s strategic expansion positions it as a formidable player in the market. The company’s foresight in growing through targeted acquisitions underscores its commitment to delivering value to shareholders and stakeholders alike.
The company has been bolstering its materials business through both greenfield and bolt-on investments, and improved segment margins.
In December 2023, the company acquired both LRC and MSG, bolstering its presence in the Memphis metropolitan market. LRC, operated in seven asphalt plants, and MSG, with three sand and gravel mines, brought a wealth of proven and probable reserves to GVA’s portfolio.
Shares of GVA soared 10.6% in the past three months compared with the Zacks Building Products – Heavy Construction industry’s 1.2% growth. Earnings estimates for 2024 have moved up to $5.24 from $4.76 in the past 30 days, indicating 66.9% year-over-year growth.
The consistent award wins have been driving GVA’s performance. The company is focused on growing a high-quality CAP portfolio on the back of a positive public funding environment and resilient private market.
Zacks Rank & Recent Releases
Granite currently sports a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
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