SunTx Capital Comments On Closing Of Construction Partners' Initial Public Offering

DALLAS, July 19, 2018 /PRNewswire/ -- SunTx Capital Partners ("SunTx"), a Dallas, TX-based private equity firm that helps build middle market manufacturing, distribution and service companies, today commented on the closing of Construction Partner's ("CPI") initial public offering, wherein CPI sold 9,350,000 shares, and certain selling stockholders sold 2,600,000 shares.  CPI, a portfolio company of SunTx Capital Partners, is now listed on The Nasdaq Global Select Market under the symbol "ROAD."  The selling stockholders in the offering consisted of funds managed by SunTx.

Headquartered in Dothan, Alabama, Construction Partners is a vertically integrated civil infrastructure company operating across five southeastern states. Publicly funded projects make up the majority of its business and include local and state roadways, interstate highways, airport runways and bridges. The majority of CPI's public projects are maintenance related. Private sector projects include paving and sitework for residential subdivisions, office and industrial parks, shopping centers and local businesses.

Ned N. Fleming, III, Founder and Managing Partner of SunTx Capital Partners, and Executive Chairman of Construction Partners, said, "We congratulate CPI on their tremendous accomplishments.  When we first invested in CPI, the company was a small and local player, yet it had an exceptional management team and a vision of becoming a best-in-class civil infrastructure business. Today, CPI employs 2,000 people, is either number 1 or number 2 in each of its 30 geographies, expects to generate annual revenue of approximately $700 million in fiscal year 2018, enjoys a reputation for exceptional quality and service, and has a demonstrated track record of successfully consolidating the industry while seamlessly integrating acquisitions. CPI has acquired and integrated 16 companies since its founding in 2001."

Mr. Fleming continued, "The South is one of the fastest growing regions in the nation and its roads need continual maintenance and repairs, as well as new roads, expanded roads, and upgrades. CPI has and will continue to meet those needs, which, we believe, will further accelerate both commercial and residential growth in the Southeast. Importantly, CPI's balance sheet is strong, its management team and employees are exceptional, and its processes are the best in the business. As continuing stockholders in the business, my partners and I look forward to embracing what the future holds for this excellent company."

Charles E. Owens, President and CEO of Construction Partners Inc., added, "We are excited to now be a public company and would like to thank the SunTx team for all of their support. We could not have wished for a better partner over these past years, and we are grateful to have benefited from their strategic vision and invaluable counsel. As we embark on this new chapter, we are optimally situated to fully capitalize on the vast opportunities ahead of us."

CPI received net proceeds of approximately $104.3 million from the initial public offering, which it intends to use to provide growth capital, to fund acquisitions and for general corporate purposes, which may include the repayment of debt from time to time. CPI did not receive any proceeds from shares sold by the selling stockholders.

ABOUT SUNTX CAPITAL PARTNERS
SunTx Capital Partners, LP, is a Dallas, TX-based private equity firm that invests in middle market manufacturing, distribution and service companies. SunTx specializes in supporting talented management teams in industries where SunTx can apply its operational experience and financial expertise to build leading middle-market companies with operations typically in the Sun Belt region of the United States. The capital committed by SunTx comes from the principals of SunTx as well as from institutional investors, including leading university endowments and corporate and public pension funds. More information about SunTx can be found at www.suntx.com.

ABOUT CONSTRUCTION PARTNERS, INC.
Construction Partners is a vertically integrated civil infrastructure company operating across five southeastern states, operating 30 Hot Mix Asphalt plants and nine aggregate facilities.  Publicly funded projects make up the majority of its business and include local and state roadways, interstate highways, airport runways and bridges. The majority of CPI's public projects are maintenance related. Private sector projects include paving and sitework for residential subdivisions, office and industrial parks, shopping centers and local businesses. To learn more, visit www.constructionpartners.net.

Media Contact:
Daniel Yunger / Cathryn Vaulman
Kekst
(212) 521-4800
[email protected]

Cautionary Note Regarding Forward-Looking Statements

Certain information contained herein that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. These statements may be identified by the use of words such as "may," "will," "expect," "should," "anticipate," "intend," "believe" and "plan." The forward-looking statements contained in this press release include, without limitation, statements related to future events, business strategy, future performance, future operations, backlog, financial position, estimated revenues and losses, projected costs, prospects, plans and objectives of management.  These and other forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Important factors could cause actual results to differ materially from those expressed in the forward-looking statements, including, among others: our ability to successfully manage and integrate acquisitions; failure to realize the expected economic benefits of the acquisition, including future levels of revenues being lower than expected and costs being higher than expected; failure or inability to implement growth strategies in a timely manner; declines in public infrastructure construction and reductions in government funding, including the funding by transportation authorities and other state and local agencies; risks related to our operating strategy; competition for projects in our local markets; risks associated with our capital-intensive business; government requirements and initiatives, including those related to funding for public or infrastructure construction, land usage and environmental, health and safety matters; unfavorable economic conditions and restrictive financing markets; our ability to successfully identify, manage and integrate acquisitions; our ability to obtain sufficient bonding capacity to undertake certain projects; our ability to accurately estimate the overall risks, requirements or costs when we bid on or negotiate contracts that are ultimately awarded to us; the cancellation of a significant number of contracts or our disqualification from bidding for new contracts; risks related to adverse weather conditions; our substantial indebtedness and the restrictions imposed on us by the terms thereof; our ability to maintain favorable relationships with third parties that supply us with equipment and essential supplies; our ability to retain key personnel and maintain satisfactory labor relations; property damage, results of litigation and other claims and insurance coverage issues; risks related to our information technology systems and infrastructure; our ability to remediate material weaknesses in internal control over financial reporting identified in preparing our financial statements and to subsequently maintain effective internal control over financial reporting; and the risks, uncertainties and factors set forth under "Risk Factors" in Construction Partners' registration statement on Form S-1.  Forward-looking statements speak only as of the date they are made.  Construction Partners assumes no obligation to update forward-looking statements to reflect actual results, subsequent events, or circumstances or other changes affecting such statements expect to the extent required by applicable law.

SOURCE SunTx Capital Partners

Related Links

http://www.suntx.com

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