Construction Partners Expands with Tennessee Platform Acquisition
Construction Partners, Inc., a leading vertically integrated civil infrastructure company focused on the construction and maintenance of roadways across the high-growth Sunbelt region, today announced a significant strategic expansion with the acquisition of PRI of East Tennessee, Inc., and Pavement Restorations, Inc. (collectively, “PRI”). This acquisition establishes PRI as CPI’s new platform company in the state of Tennessee, significantly broadening its operational footprint within this key market.
PRI, headquartered in Knoxville and Milan, Tennessee, brings a wealth of experience and resources to the CPI portfolio. PRI of East Tennessee operates a state-of-the-art hot-mix asphalt plant in Knoxville, providing comprehensive construction and paving services for a diverse range of public and private infrastructure projects throughout northeastern Tennessee. Pavement Restorations, Inc., based in Milan, is a well-regarded asphalt repair contractor specializing in pavement preservation and a variety of specialized sitework services.
Fred J. (Jule) Smith, III, President and Chief Executive Officer of Construction Partners, Inc., expressed his enthusiasm for this strategic acquisition. “We are pleased to welcome PRI and its nearly 300 employees to the CPI family of companies as our platform company in Tennessee,” Smith stated. He highlighted the significance of this expansion, noting, “With today’s transaction, we now stretch the length of the state, from Knoxville in the east to the greater Memphis metro area in the west.” This expanded geographic presence positions CPI to capitalize on growth opportunities across the entire state.
The leadership of the newly combined PRI organization will be entrusted to two seasoned industry veterans with extensive experience operating within the Tennessee market. Jon Hargett will serve as President, and Greg Ailshie will take on the role of Senior Vice President. Smith expressed confidence in their leadership, stating that PRI will “benefit from the technical expertise and visionary leadership of two industry veterans with decades of experience operating in Tennessee.”
Smith also underscored the compelling growth prospects within the Tennessee market. “The State of Tennessee is ripe with organic and acquisitive growth opportunities, driven by strong economic growth, favorable demographic trends, and a healthy transportation funding program,” he explained. To further optimize its operations in the state, CPI intends to integrate its existing Tennessee assets under the PRI platform. This transition will involve the management of CPI’s three existing hot-mix asphalt plants located in the Nashville metropolitan area being overseen by the PRI leadership team. Smith conveyed optimism for continued success in this dynamic market.
Furthermore, the acquisition of Pavement Restorations, Inc., significantly enhances CPI’s capabilities in the growing pavement preservation sector. Smith noted the increasing demand for innovative solutions to extend the lifespan of existing infrastructure. “In addition, as our states, municipalities and private customers seek innovative solutions for protecting and extending the life of their pavements, PRI’s specialized crews and equipment complement our current operations well and further enhance our ability to meet this growing demand as a leader in the pavement preservation industry,” he concluded.
This strategic acquisition of PRI represents a significant step in Construction Partners, Inc.’s continued growth strategy within the Sunbelt region. By establishing a strong platform in Tennessee, CPI is well-positioned to capitalize on the state’s robust economic growth and infrastructure investment. The integration of PRI’s experienced team, extensive asphalt production capabilities, and specialized pavement preservation services will not only strengthen CPI’s market presence in Tennessee but also enhance its overall service offerings across its operating footprint. The company’s vertically integrated model, combined with this strategic expansion, positions it for continued success in the civil infrastructure sector. The market’s response to this acquisition and the subsequent integration of operations will be closely watched by investors and industry participants alike.
