Cardinal Infrastructure Stock Climbs Following Revised Acquisition Terms

A 6.8% jump in Cardinal Infrastructure Group shares on Monday signals investor approval of a restructured deal to acquire Florida-based Hughes Brothers Construction. The stock, which had endured a 35% decline throughout the year, closed at $15.61 following the announcement of a new payment mix for the $357.5 million transaction.

Today, 20:05· Money Talk· 769 reads

Cardinal Infrastructure Stock Climbs Following Revised Acquisition Terms

The revised agreement tilts the payment structure toward liquidity, with 60% of the purchase price now set in cash and 40% in stock, moving away from the previous even-split arrangement. Under these terms, Hughes Brothers’ owners will receive approximately $214.5 million in cash alongside 5.3 million shares valued at $27.21 per share.

The deal also includes a performance-based earnout provision of up to $162.5 million, contingent on the contractor’s adjusted earnings before interest, taxes, depreciation, and amortization for the fiscal year concluding June 30, 2027. Cardinal Infrastructure anticipates the acquisition will immediately bolster adjusted Ebitda per share, with the final closing process currently slated for the fourth quarter.

Cardinal Infrastructure Stock Climbs Following Revised Acquisition Terms

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