Cardinal Infrastructure to acquire Hughes Brothers for up to $455 million
+2 new sources since this summary was written
Cardinal Infrastructure Group announced an agreement to buy Central Florida contractor Hughes Brothers Construction for $357.5 million, with as much as $97.5 million in performance-based consideration. Hughes Brothers brings TTM revenue exceeding $220 million and approximately $350 million in backlog. Cardinal targets completion during Q4 2026, with regulatory clearance and customary closing requirements still outstanding.
Why it matters
The purchase expands Cardinal's operating presence in Central Florida and will be financed with cash, Cardinal stock and new debt. Cardinal expects the acquisition to immediately improve its 2026 adjusted EBITDA margin range, while the deal also changes the company's capital structure.
Key facts
- 1Hughes Brothers employs more than 500 people. prnewswire.com
- 2Shares issued to Hughes Brothers' selling stockholders will carry a 180-day lock-up. prnewswire.com
- 3Cardinal estimates pro forma net leverage at 1.4x, below its maximum target of 2.5x. prnewswire.com
- 4Chad Hughes and Justin Hughes will remain in leadership roles after the acquisition. prnewswire.com
Summary written by AlphAI AI Desk from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.