Construction Partners, Inc. Grows Texas Footprint with Strategic Houston Acquisition

Construction Partners, Inc. (NASDAQ: ROAD) has completed a major strategic acquisition in Texas, acquiring Durwood Greene Construction Co. and G&S Asphalt, Inc. (doing business as American Materials) to strengthen its operational reach in the Houston metropolitan area—one of the fastest-growing and most infrastructure-intensive markets in the United States.

The acquisition includes three hot-mix asphalt (HMA) plants and a rail-serviced aggregates terminal, all located in the Houston metro. This deal significantly increases CPI’s production and logistics capacity in the region, aligning with the company’s long-term growth strategy across the Sunbelt.

“This transaction allows us to extend our geographic reach and create synergies with our existing Texas operations,” said Fred J. Smith III, President and CEO of Construction Partners, Inc. “We remain focused on disciplined capital allocation and integrating newly acquired operations seamlessly into our platform.”

The newly acquired companies bring approximately 200 employees into the Construction Partners network. As part of the acquisition, Brad, Jonathan, and Daniel Greene—leaders of the third-generation family business—will continue overseeing operations to ensure a smooth transition and maintain long-standing client relationships.

“With every acquisition, our goal is to strengthen local relationships while also enhancing operational efficiency,” Smith added. “We look forward to growing with the communities we serve.”

Houston: A Critical Market for CPI

Houston is the fifth-largest metro area in the country and a prime market for infrastructure investment. CPI’s expansion into this region adds scale to its existing presence in Texas, where the company already has a foothold following the acquisition of Lone Star Paving.

This new acquisition helps solidify CPI’s presence in three of Texas’s four largest metropolitan areas, positioning it for expanded public and private sector work throughout the state.

According to the company, vertical integration is a key benefit of the deal. The newly acquired Durwood Greene operations will gain access to liquid asphalt cement through Lone Star Paving’s Channelview terminal, enhancing cost efficiency and supply chain control.

“This acquisition represents a continuation of our strategy to expand in high-growth markets where we can build scale and enhance our ability to serve customers,” said Smith.

Strategic Benefits and Operational Considerations

This acquisition brings multiple strategic positives:

• Enhanced vertical integration through asphalt and material production.
• Expanded geographic footprint in one of the nation's most infrastructure-focused states.
• Retention of an experienced leadership team, reducing integration risk.
• Synergies with existing Texas operations, including Lone Star Paving.
• Stronger positioning in public infrastructure bids in a high-demand market.

At the same time, the company acknowledges potential challenges, including the integration of nearly 200 new employees and increased exposure to market risk concentrated in Texas.

Nevertheless, the move reflects confidence in the continued economic growth and transportation funding environment in Texas.

“As states like Texas continue to prioritize infrastructure development, our presence in these markets becomes even more critical to supporting economic growth,” said Smith.

A Calculated Growth Play in a High-Growth Market

The acquisition is more than an expansion—it’s a calculated move in a state that’s experiencing ongoing population growth, economic expansion, and strong demand for road and bridge construction.

With both organic growth and acquisitions in play, CPI continues to execute a methodical strategy to scale operations in Sunbelt markets, backed by federal and state infrastructure investments.

“We remain opportunistic and disciplined in our approach to M&A,” Smith concluded. “As we continue to execute our strategic plan, acquisitions like this one will play a key role in delivering long-term value.”

Originally reported by Stock Titan.