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Granite Completes Acquisitions of Warren Paving and Papich Construction to Strengthen and Expand Vertically-Integrated Home Markets

1. Granite (GVA) completed two acquisitions for $710 million, enhancing revenue potential. 2. Expected $425 million revenue contribution annually with an 18% adjusted EBITDA margin.

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FAQ

Why Bullish?

The acquisitions significantly boost revenue, resembling past successful growth strategies by GVA.

How important is it?

The acquisitions directly enhance GVA's market position and revenue, which typically favor stock price appreciation.

Why Long Term?

Increased revenue and EBITDA will benefit GVA's financial health over multiple quarters.

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BAMCCIFLR
WATSONVILLE, Calif.--(BUSINESS WIRE)--Granite (NYSE: GVA) today announced that it has completed two acquisitions that strengthen its vertically-integrated home markets for a combined purchase price of $710 million, subject to customary closing adjustments. Together, the acquisitions are expected to contribute approximately $425 million in revenue annually with an expected adjusted EBITDA margin of approximately 18%. This implies a blended multiple of approximately 9.2x expected adjusted EBITDA.

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