Cardinal Infrastructure to Buy Hughes Brothers for $357.5 Million

The Tip Desk · October 26, 2026 · 2 min read

The mixed cash-and-stock deal is expected to close in the fourth quarter of 2026 and is framed as a step into Central Florida.

Cardinal Infrastructure Group, Inc. (CDNL) agreed to acquire Hughes Brothers Construction Inc. for a purchase price of $357.5 million in a mixed cash-and-stock transaction expected to close in the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions. Under the amended agreement, sellers are also eligible to receive an earnout of up to $162.5 million based on Hughes Brothers’ adjusted EBITDA for the twelve months ending June 30, 2027.

The consideration is 60% cash and 40% Cardinal Class A common stock. The company said the acquisition establishes a scaled platform in the fast-growing Central Florida market and supports its strategy to build the Southeast’s premier site development platform.

“We are excited to welcome Hughes Brothers to Cardinal as we take another important step in our strategy to build the Southeast’s premier site development platform by moving into the fast-growing Central Florida market,” said Jeremy Spivey, CEO of Cardinal Infrastructure Group.

Cardinal said the deal is intended to extend the company’s site-development footprint into a market it described as fast-growing, giving it a larger operating base in Central Florida rather than a single-project entry. The mix of cash and Cardinal Class A common stock leaves a portion of the purchase price in equity, with the remainder paid in cash at close.

The company framed the transaction as a platform move: a scaled presence in Central Florida that it said fits its broader plan to become the Southeast’s premier site development platform. Spivey’s comment tied the Hughes Brothers purchase directly to that Southeast strategy and to the Central Florida market.

Closing is expected in the fourth quarter of 2026, conditional on regulatory approvals and customary closing conditions. Until those conditions are satisfied, the $357.5 million purchase price and the 60% cash / 40% Cardinal Class A common stock split remain the agreed terms rather than a completed transfer.

Hughes Brothers generated an adjusted EBITDA margin of 25% on revenue of $220 million for the twelve months ended June 30, 2026, and its current backlog of approximately $350 million provides visibility into future revenue and profitability.

Cardinal said the acquisition is another step in that Southeast platform strategy, with Central Florida as the named market. The cash-and-stock mix and the fourth-quarter 2026 close, still subject to regulatory and customary conditions, define the remaining path from agreement to completion.