Cardinal Infrastructure Group has agreed to buy Hughes Brothers Construction for US$357.5m in cash and stock, with an earnout that could lift the price to about US$455m.
Why Cardinal Infrastructure Group is buying Hughes Brothers Construction
Hughes Brothers performs underground utilities, site preparation, earthwork, sewer, gas main and roadway work, self-performs much of it and owns its fleet. Chief executive Jeremy Spivey said the deal moves Cardinal into Central Florida as it builds a Southeast site development platform.
Deal terms and financing
The price is payable in cash and Cardinal Class A stock, with shares subject to a 180-day lock-up; the cash will come from new debt and cash on hand. Sellers may receive up to US$97.5m more based on adjusted EBITDA for 2026. Cardinal put pro forma net leverage at 1.4 times.
Regulatory approvals and timing
The deal is subject to regulatory approvals and customary conditions and is expected to close in the fourth quarter of 2026.
Market context
Co-founders Chad and Justin Hughes will continue to lead the business. Cardinal, which focuses on site development in the Southeast US, said the price was consistent with its typical range for new market platform acquisitions.
