Granite Announces Acquisition Of Lehman-Roberts Company And Memphis Stone & Gravel Company; No Financial Terms Disclosed On Acquisition; Increasing 2024 Revenue Target To A Revenue Range Of $3.8B-$4B Vs $3.67B Est.
Portfolio Pulse from Benzinga Newsdesk
Granite Construction Incorporated (NYSE:GVA) has acquired Lehman-Roberts Company and Memphis Stone & Gravel Company, expanding its footprint in the Memphis market. The acquisition prompts Granite to increase its 2024 revenue target to $3.8B-$4B. The acquisition is expected to be accretive to EBITDA, but the 2024 adjusted EBITDA margin target remains at 9%-11%. The acquisition was financed through a new $150M term loan and existing credit facilities.
December 05, 2023 | 2:14 pm
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POSITIVE IMPACT
Granite Construction's acquisition of LRC and MSG is set to expand its market presence in Memphis, with an increased revenue target for 2024. The deal is financed through a mix of debt and existing cash, and is expected to be accretive to EBITDA.
The acquisition is likely to be viewed positively as it indicates growth and expansion into a new market, which could lead to increased investor confidence and a potential rise in stock price. The fact that the acquisition is expected to be accretive to EBITDA is also a positive sign for profitability. However, the impact on the stock price will also depend on investor perception of the debt taken on to finance the acquisition.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100