Cardinal Infrastructure Group (CDNL) Enters into Amended Agreement for Acquisition of Hughes Brothers Construction Inc.
Cardinal Infrastructure Group amended its agreement to acquire Hughes Brothers Construction, keeping the $357.5 million purchase price but shifting the mix to 60% cash and 40% Class A stock from a 50/50 split. Hughes Brothers' owners will receive roughly $214.5 million in cash plus 5,255,420 CDNL shares issued at $27.21, and an earnout of up to $162.5 million tied to adjusted EBITDA for the 12 months ending June 30, 2027. The target generated $220 million of revenue at a 25% adjusted EBITDA margin with an approximately $350 million backlog, and Cardinal expects the deal to be immediately accretive to adjusted EBITDA per share.
Key figures
- Deal Value Usd
- $357.5 million
- Max earnout
- $162.5 million
- Shares issued
- 5255420
- Target backlog
- approximately $350 million
- Consideration mix
- 60% cash / 40% stock (from 50/50)
- Cash consideration
- $214.5 million
- Target revenue ttm
- $220 million
- Issue price per share
- 27.21
- Target adjusted ebitda
- $55.0 million
- Earnout additional shares
- 2388827
- Target adjusted ebitda margin
- 25.0%
AI analysis
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