Granite (NYSE:GVA) announced on Monday the completion of its acquisition of Kenny Seng Construction, a strategic move aimed at solidifying the company's vertically integrated construction and materials platform in Utah.
The deal expands Granite's reach in one of the nation's high-growth regions, integrating end-to-end service capabilities ranging from earthwork and utility installation to project management.
The acquisition brings an attractive financial profile to Granite’s portfolio, with Kenny Seng Construction generating approximately $150 million in annual revenue.
The business is expected to deliver an adjusted EBITDA margin in the high teens, supported by its presence in resilient end markets such as education and civil infrastructure.
A primary driver of the transaction is the enhancement of Granite’s materials footprint.
The deal includes a hard rock quarry and additional growth prospects, including a potential sand and gravel pit.
These assets contribute roughly one million tons of annual production and approximately 45 million tons of combined reserves and measured and inferred resources.