Background
Lone Star Paving, headquartered in Austin, Texas, was a full-service asphalt paving company with over 125 years of collective experience in the industry. The company specialized in a wide range of asphalt and concrete services, including asphalt paving and repairs, parking lot repairs, sealcoating, crack sealing, concrete repairs, and striping. Founded by Jack Wheeler, who had over 30 years of experience in the field, Lone Star Paving aimed to satisfy the growing needs of highway construction while maintaining crews dedicated to paving commercial and multifamily projects.
Key Strategic Focus
Lone Star Paving's strategic focus was on providing cost-effective solutions for asphalt and concrete needs, emphasizing integrity, dedication, and passion. The company operated two strategically located asphalt plants in Austin, Florence, New Braunfels, and Spicewood, supported by a labor force of over 400 employees and thirteen large paving crews across the Austin, Temple, and San Antonio areas. Their capabilities included a maintenance division responsible for parking lot repairs, sealcoating, and striping projects, as well as three smaller crews handling various maintenance projects such as asphalt repairs, concrete repairs, sealcoating, crack sealing, and striping.
Financials and Funding
In October 2024, Construction Partners, Inc. (CPI) entered into a definitive agreement to acquire Lone Star Paving for $654 million in cash and 3 million shares of CPI's Class A common stock. The acquisition was expected to be immediately accretive to earnings upon closing and was anticipated to generate an annualized run-rate contribution of $530 million in revenue and $120 million of Adjusted EBITDA in fiscal 2025.
Pipeline Development
Prior to the acquisition, Lone Star Paving's pipeline development focused on expanding its operations in central Texas, particularly in the Austin, San Antonio, and Temple-Killeen metropolitan areas. The company aimed to enhance its infrastructure and service offerings to meet the growing demand in these high-growth markets.
Technological Platform and Innovation
Lone Star Paving emphasized vertical integration in its operations, allowing the company to reduce volatility, capture value to enhance margins, and maintain operational and scheduling flexibility. This approach involved owning and operating its own asphalt plants, aggregate facilities, and a liquid asphalt terminal, enabling greater control over the quality and timeliness of its services.
Leadership Team
- Jack Wheeler: Founder and CEO of Lone Star Paving, with over 40 years of experience in the asphalt industry. Under his leadership, the company established a well-respected brand in Texas.
- Tyler Wheeler: Owner and Estimator at Lone Star Paving, involved in overseeing operations and estimating project costs.
In October 2024, Construction Partners, Inc. announced the acquisition of Lone Star Paving, marking a significant change in the company's leadership structure. Following the acquisition, Jack Wheeler continued to lead the company as part of the CPI family, focusing on expanding the Texas platform.
Competitor Profile
The asphalt paving industry in central Texas is characterized by rapid growth driven by increasing infrastructure development and urban expansion in metropolitan areas such as Austin, San Antonio, and Temple-Killeen.
Key competitors in the region include companies like Texas Bitulithic Company, Texas Materials Group, and Texas Paving Company. These firms offer similar services in asphalt and concrete paving, maintenance, and related infrastructure services.
Strategic Collaborations and Partnerships
Prior to its acquisition, Lone Star Paving maintained longstanding relationships with a diverse group of customers, including the Texas Department of Transportation (TxDOT), local municipalities in San Antonio, heavy civil contractors, and commercial and residential developers.
Operational Insights
Lone Star Paving's vertical integration strategy, which included owning and operating its own asphalt plants, aggregate facilities, and a liquid asphalt terminal, provided the company with greater control over its operations, allowing for enhanced scheduling flexibility and margin enhancement.
Strategic Opportunities and Future Directions
The acquisition by Construction Partners, Inc. opened new avenues for growth and expansion for Lone Star Paving, particularly in the rapidly growing central Texas market. The combined resources and expertise of both companies are expected to accelerate the achievement of CPI's ROAD-Map 2027 goals, including reaching an Adjusted EBITDA Margin of 13% to 14% in fiscal 2025, two years ahead of schedule.
Contact Information
- Website: lonestarpavingtx.com
- Social Media: Facebook - LoneStarPavingTX
- Headquarters: Austin, Texas
