Cardinal Infrastructure Group (NASDAQ: CDNL) has closed its acquisition of Allied Paving Contractors, the company announced Oct. 1. The deal expands Cardinal's self-performing capabilities in the Atlanta market.
Where the Money Lands:
Allied generated approximately $100 million in revenue on a standalone basis.
A portion of that volume will be performed on Cardinal projects.
That portion will be reflected in margin rather than consolidated revenue.
So don't expect all of Allied's roughly $100 million to hit Cardinal's top line. Some of that work will show up in margin instead.
Grade It, Then Pave It: COO Benji Wood said the added capabilities let Cardinal sequence paving directly behind its grading and site development teams and shorten project timelines.
In other words, Cardinal can now take an Atlanta site from grading to paving with its own crews.
Wood also called Allied "one of the best in the business," which is a solid review coming from its new owners.
A New Seat at Cardinal's Table: Allied CEO John McLean will join Cardinal's leadership team, managing paving operations across Georgia. Per Cardinal, the deal fits its strategy of targeting founder-led companies.
As this deal shows up in future results, watch Cardinal's margin as closely as its revenue.
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