DALLAS, July 19, 2018 /PRNewswire/ -- SunTx Capital
Partners ("SunTx"), a Dallas,
TX-based private equity firm that helps build middle market
manufacturing, distribution and service companies, today commented
on the closing of Construction Partner's ("CPI") initial public
offering, wherein CPI sold 9,350,000 shares, and certain selling
stockholders sold 2,600,000 shares. CPI, a portfolio company
of SunTx Capital Partners, is now listed on The Nasdaq Global
Select Market under the symbol "ROAD." The selling
stockholders in the offering consisted of funds managed by
SunTx.
Headquartered in Dothan,
Alabama, Construction Partners is a vertically integrated
civil infrastructure company operating across five southeastern
states. Publicly funded projects make up the majority of its
business and include local and state roadways, interstate highways,
airport runways and bridges. The majority of CPI's public projects
are maintenance related. Private sector projects include paving and
sitework for residential subdivisions, office and industrial parks,
shopping centers and local businesses.
Ned N. Fleming, III, Founder and
Managing Partner of SunTx Capital Partners, and Executive Chairman
of Construction Partners, said, "We congratulate CPI on their
tremendous accomplishments. When we first invested in CPI,
the company was a small and local player, yet it had an exceptional
management team and a vision of becoming a best-in-class civil
infrastructure business. Today, CPI employs 2,000 people, is either
number 1 or number 2 in each of its 30 geographies, expects to
generate annual revenue of approximately $700 million in fiscal year 2018, enjoys a
reputation for exceptional quality and service, and has a
demonstrated track record of successfully consolidating the
industry while seamlessly integrating acquisitions. CPI has
acquired and integrated 16 companies since its founding in
2001."
Mr. Fleming continued, "The South is one of the fastest growing
regions in the nation and its roads need continual maintenance and
repairs, as well as new roads, expanded roads, and upgrades. CPI
has and will continue to meet those needs, which, we believe, will
further accelerate both commercial and residential growth in the
Southeast. Importantly, CPI's balance sheet is strong, its
management team and employees are exceptional, and its processes
are the best in the business. As continuing stockholders in the
business, my partners and I look forward to embracing what the
future holds for this excellent company."
Charles E. Owens, President and
CEO of Construction Partners Inc., added, "We are excited to now be
a public company and would like to thank the SunTx team for all of
their support. We could not have wished for a better partner over
these past years, and we are grateful to have benefited from their
strategic vision and invaluable counsel. As we embark on this new
chapter, we are optimally situated to fully capitalize on the vast
opportunities ahead of us."
CPI received net proceeds of approximately $104.3 million from the initial public offering,
which it intends to use to provide growth capital, to fund
acquisitions and for general corporate purposes, which may include
the repayment of debt from time to time. CPI did not receive any
proceeds from shares sold by the selling stockholders.
ABOUT SUNTX CAPITAL PARTNERS
SunTx Capital Partners,
LP, is a Dallas, TX-based private
equity firm that invests in middle market manufacturing,
distribution and service companies. SunTx specializes in supporting
talented management teams in industries where SunTx can apply its
operational experience and financial expertise to build leading
middle-market companies with operations typically in the Sun Belt
region of the United States. The
capital committed by SunTx comes from the principals of SunTx as
well as from institutional investors, including leading university
endowments and corporate and public pension funds. More information
about SunTx can be found at www.suntx.com.
ABOUT CONSTRUCTION PARTNERS, INC.
Construction
Partners is a vertically integrated civil infrastructure company
operating across five southeastern states, operating 30 Hot Mix
Asphalt plants and nine aggregate facilities. Publicly funded
projects make up the majority of its business and include local and
state roadways, interstate highways, airport runways and bridges.
The majority of CPI's public projects are maintenance related.
Private sector projects include paving and sitework for residential
subdivisions, office and industrial parks, shopping centers and
local businesses. To learn more, visit
www.constructionpartners.net.
Media Contact:
Daniel Yunger / Cathryn Vaulman
Kekst
(212) 521-4800
daniel.yunger@kekst.com
Cautionary Note Regarding Forward-Looking Statements
Certain information contained herein that are not statements of
historical or current fact constitute "forward-looking statements"
within the meaning of Section 21E of the Securities Exchange Act of
1934. These statements may be identified by the use of words such
as "may," "will," "expect," "should," "anticipate," "intend,"
"believe" and "plan." The forward-looking statements contained in
this press release include, without limitation, statements related
to future events, business strategy, future performance, future
operations, backlog, financial position, estimated revenues and
losses, projected costs, prospects, plans and objectives of
management. These and other forward-looking statements are
based on management's current views and assumptions and involve
risks and uncertainties that could significantly affect expected
results. Important factors could cause actual results to differ
materially from those expressed in the forward-looking statements,
including, among others: our ability to successfully manage and
integrate acquisitions; failure to realize the expected economic
benefits of the acquisition, including future levels of revenues
being lower than expected and costs being higher than expected;
failure or inability to implement growth strategies in a timely
manner; declines in public infrastructure construction and
reductions in government funding, including the funding by
transportation authorities and other state and local agencies;
risks related to our operating strategy; competition for projects
in our local markets; risks associated with our capital-intensive
business; government requirements and initiatives, including those
related to funding for public or infrastructure construction, land
usage and environmental, health and safety matters; unfavorable
economic conditions and restrictive financing markets; our ability
to successfully identify, manage and integrate acquisitions; our
ability to obtain sufficient bonding capacity to undertake certain
projects; our ability to accurately estimate the overall risks,
requirements or costs when we bid on or negotiate contracts that
are ultimately awarded to us; the cancellation of a significant
number of contracts or our disqualification from bidding for new
contracts; risks related to adverse weather conditions; our
substantial indebtedness and the restrictions imposed on us by the
terms thereof; our ability to maintain favorable relationships with
third parties that supply us with equipment and essential supplies;
our ability to retain key personnel and maintain satisfactory labor
relations; property damage, results of litigation and other claims
and insurance coverage issues; risks related to our information
technology systems and infrastructure; our ability to remediate
material weaknesses in internal control over financial reporting
identified in preparing our financial statements and to
subsequently maintain effective internal control over financial
reporting; and the risks, uncertainties and factors set forth under
"Risk Factors" in Construction Partners' registration statement on
Form S-1. Forward-looking statements speak only as of the
date they are made. Construction Partners assumes no
obligation to update forward-looking statements to reflect actual
results, subsequent events, or circumstances or other changes
affecting such statements expect to the extent required by
applicable law.
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SOURCE SunTx Capital Partners