Cardinal Infrastructure to Buy Allied Paving in $120 Million Mixed Deal
The acquisition brings paving capabilities in-house for the Atlanta-based contractor, extending its vertical-integration strategy into a new market.
Cardinal Infrastructure Group Inc. (CDNL) agreed to acquire Allied Paving Contractors, Inc. for approximately $120 million in a mixed cash-and-equity transaction.
The deal structure combines cash and equity consideration, though specific terms of the split were not disclosed. Cardinal said the transaction brings paving capabilities in-house in Atlanta and supports meaningful margin capture and shorter project timelines.
The acquisition extends Cardinal's vertical-integration playbook into the Atlanta market, a strategy the company has pursued aggressively across the Southeast. In February 2026, Cardinal completed its acquisition of A.L. Grading Contractors, a Sugar Hill, Georgia-based site-development firm, for $245.5 million in a mixed-cash-and-equity deal that marked Cardinal's first expansion outside the Carolinas. That transaction carried a purchase multiple of roughly 5.8 times trailing EBITDA and was immediately accretive to earnings.
Allied Paving's Atlanta operations give Cardinal direct control over asphalt production and paving services in one of the fastest-growing metropolitan areas in the Southeast. The move mirrors a broader industry trend toward vertical integration, where contractors seek to capture margin by owning the supply chain rather than subcontracting paving work. Construction Partners Inc. (ROAD) has pursued a similar strategy across the Sunbelt, acquiring Lone Star Paving in Austin, Texas, for $654 million in cash and stock in late 2024 to add 10 hot-mix asphalt plants and aggregate facilities. Construction Partners subsequently completed smaller tuck-in acquisitions in Florida and Tennessee to deepen its regional footprint.
Paving and materials represented roughly 6 percent of fiscal 2025 revenue, with the company planning fleet expansion and its first owned asphalt plant coming online in mid-2026. The Allied Paving acquisition accelerates that buildout by adding established paving capacity in a core growth market.
The transaction is expected to close following customary regulatory approvals and conditions. Cardinal did not disclose expected accretion or specific synergy targets for the Allied Paving deal.