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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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.
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