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Cardinal Infrastructure Group (CDNL) Announces the Acquisition of A. L. Grading Contractors

by Cardinal Infrastructure Group on

Cardinal Infrastructure Group, Inc., (NASDAQ: CDNL) (“Cardinal” or “the Company”) announced today that it has acquired Sugar Hill, Georgia-based A.L. Grading Contractors (“ALGC”). A fourth-generation, high-growth market leader, ALGC provides comprehensive site development solutions, including grading, underground utilities, erosion control, and clearing, supporting large-scale commercial, industrial, and residential construction in Georgia and South Carolina.

The transaction is the first expansion in the Southeast for Cardinal outside the Carolinas and signifies another step in Cardinal’s growth strategy.

Strategic Highlights

  • ALGC holds a leading position in a high-growth, mission-critical market in Georgia.
    • Expands Cardinal’s footprint into Georgia, a market aligned with broader Southeast trends that support development investment across various end markets.
    • Expected to drive growth through strong alignment with blue‑chip customers.
  • The transaction is immediately accretive. 
    • ALGC will strengthen the company’s margin profile, as reflected in Cardinal’s revised 2026 consolidated Adjusted EBITDA margin guidance.
    • Evidenced by ALGC’s compelling financial profile, including unaudited annual revenue of $160 million and a 26.3% Adjusted EBITDA margin for the trailing 12 months ended September 30, 20251.
  • ALGC is well-positioned to drive margin expansion and valuation uplift through disciplined execution and vertical integration initiatives.
    • Integration expansion enables faster project execution, schedule leadership, and margin enhancement.
    • Deployment of specialized services from the Carolinas into Georgia is expected to compress schedules and expand margins.
  • Combining the companies creates compelling economics.
    • Total consideration of $245.5 million, comprised of an $80 million extension of Cardinal’s existing credit facility, $116.9 million in issued equity2, and $48.6 million in cash, with the equity consideration subject to a six-month post-closing lockup.
    • Conservative pro forma net tangible leverage of 1.27x, below maximum target of 2.5x.
    • Valuation multiple is squarely within Cardinal’s target range.
  • ALGC has a highly experienced leadership team and strong cultural alignment with Cardinal, and they’re collectively committed to building the Southeast’s leading site development contractor.
    • ALGC’s President Lee Wood will continue his strategic leadership responsibilities and is expected to join Cardinal’s board of directors.
    • ALGC’s Vice President Benji Wood will assume the role of chief operating officer for Cardinal.
    • ALGC’s CFO Rick Leeson will continue to serve in his capacity.

Selected Preliminary Estimated 2025 Operating Results for Cardinal Infrastructure Group3

Cardinal also announced today the following selected preliminary estimated 2025 operating results:

  • Full-year revenue in the range of $452.3 million – $459.7 million, representing approximately 45% growth vs. 2024 at the midpoint.
  • Full-year Adjusted EBITDA margin in the range of 17.8% – 18.0%.4
  • Record backlog of $678.3 million – $685.7 million, representing approximately 33% growth vs. 2024 at the midpoint, reflecting the strength and durability of demand across Cardinal’s markets.

2026 Consolidated Guidance/Outlook5

Cardinal also announced today the following guidance for the year ending December 31, 2026:

  • Revenue in the range of $664.9 million to $678.3 million.
  • Adjusted EBITDA margin4 of at least 20%.

Management Commentary 

“We are thrilled to welcome the ALGC team into the Cardinal family as we complete this strategic acquisition,” said Jeremy Spivey, CEO of Cardinal Infrastructure Group. “Their exceptional culture and leadership align seamlessly with our values, positioning us for enhanced collaboration and innovation in site development. We look forward to executing our growth strategy through vertical integration and expanding our self-performed service offerings to the Georgia market, exemplifying our commitment to robust expansion and solidifying our position as the Southeast’s premier site development platform.”

About Lee Wood, Jr.

Lee Wood served as president of ALGC and has built a reputation for instituting strategic growth, operational excellence, and strong relationship-driven leadership. Under his direction, ALGC grew into a full-service site work contractor and now employs more than 300 professionals. He will continue his strategic oversight role and is expected to join Cardinal’s board of directors.

About Benji Wood

Benjamin (Benji) Wood served as vice president of ALGC, overseeing company performance, project execution, client relationships, and strategic growth initiatives. He’s known for combining innovation in operations, efficiency, and field expertise to deliver high-quality site work and infrastructure solutions. After the close of the deal, he will become chief operating officer of Cardinal Infrastructure Group.

VRA Partners, LLC, acted as the exclusive financial advisor to ALGC.

About Cardinal

Cardinal Infrastructure Group delivers its suite of comprehensive infrastructure services that support the planning, preparation, installation, and development of residential, commercial, industrial, municipal, and state infrastructure projects through wholly owned, market leading subsidiaries. Cardinal’s operations leverage in-house, highly skilled teams and equipment fleets to deliver wet utility installations (water, sewer, and stormwater systems), as well as grading, site clearing, erosion control, drilling and blasting, paving, and other related site services.