Construction Partners Acquires Nashville Paver to Fuel Sunbelt Expansion

DOTHAN, AL – April 01, 2026 – In a strategic move signaling confidence in the booming Nashville construction market, Construction Partners, Inc. (NASDAQ: ROAD) today announced its acquisition of Four Star Paving, LLC, a well-established commercial paving contractor in the middle Tennessee region. The deal integrates Four Star, a company with over two decades of local experience, into CPI's Tennessee platform company, Pavement Restorations, Inc. (PRI).

This acquisition is more than a simple line-item on a balance sheet; it represents a significant deepening of CPI's vertically integrated model in one of the nation's fastest-growing metropolitan areas. Four Star Paving, previously a long-standing asphalt customer of CPI's three Nashville-area hot-mix asphalt plants, will now bring its workforce and project pipeline directly under the CPI umbrella. The move is designed to enhance construction capacity, improve supply chain control, and position the infrastructure giant to capture a larger share of projects spurred by Nashville's relentless growth.

Paving the Way in a Booming Nashville Market

The timing of the acquisition is critical. The Nashville metropolitan area, with a population now exceeding 2.1 million, is a focal point of economic expansion in the Sunbelt. The city's job market has been a powerful engine, expanding 14% between 2018 and 2023, while its unemployment rate hovers near a low 3%. This economic vitality has fueled a construction boom that shows few signs of slowing.

Nashville's real estate market was recently ranked among the top five in the nation to watch, with its commercial real estate sector being one of the fastest-growing in the United States. The industrial market remains exceptionally strong, driven by logistics and manufacturing, with vacancy rates as low as 4.4%. While the office market has faced post-pandemic headwinds, it is showing signs of a robust recovery, with analysts projecting that nearly 90% of vacant space will be absorbed by the end of 2026 as new Class A developments attract premier tenants.

This growth creates an insatiable demand for new and improved infrastructure. Massive mixed-use developments like the 17-acre Nashville Yards and the revitalized Neuhoff District require extensive sitework, road construction, and paving—the very services CPI and Four Star provide. By acquiring an established local expert, CPI is not just buying a company; it is buying deeper access and enhanced capability to service this burgeoning market. The integration of Four Star's team is expected to provide the scale necessary to compete for and execute these large-scale projects efficiently.

A Strategic Play in Vertical Integration

The Four Star Paving deal is a textbook example of Construction Partners, Inc.'s core business strategy: growth through strategic acquisitions and vertical integration. With a strong financial performance in fiscal 2024, including a 17% revenue increase to $1.82 billion and a record project backlog of $1.96 billion, CPI has demonstrated both the capacity and the appetite for expansion. The company completed eight acquisitions in that year alone, consistently adding local market leaders to its portfolio across the Sunbelt.

Vertical integration—controlling multiple stages of the supply chain—is CPI's key competitive advantage. The company operates its own hot-mix asphalt plants, aggregate facilities, and liquid asphalt terminals. By acquiring Four Star, a major customer of its asphalt, CPI effectively internalizes a significant portion of its own demand. This move allows for greater cost control, shields the company from supply chain volatility, and improves project scheduling and efficiency. In an industry often plagued by material delays and price fluctuations, this level of control is invaluable.

Fred J. (Jule) Smith, III, CPI's President and CEO, highlighted this strategic benefit in the company's announcement. "This transaction strengthens our vertical integration of services and enhances our capabilities and scale across the region," he stated. "With the integration of Four Star's talented workforce into PRI, we are enhancing our construction capacity to support continued growth in middle Tennessee. As the Nashville metro area continues to rapidly grow, we are now better positioned than ever to participate in the resulting construction projects and opportunities."

Consolidation Reshapes Local Construction Landscape

This acquisition also reflects a broader trend of consolidation within the highly fragmented U.S. construction industry. As larger, publicly-traded firms like CPI leverage their financial power, smaller and mid-sized independent contractors face mounting competitive pressure. The absorption of Four Star Paving, a respected firm with an estimated annual revenue of $20 million and a strong local reputation built over 20 years, marks a significant shift in the Nashville market.

For two decades, Four Star cultivated its own brand, the "Four Star Way," which emphasized quality, client relationships, and a culture of respect and accountability. Its portfolio included a mix of municipal, industrial, and commercial projects throughout Middle Tennessee. Now, this local expertise and client base will be channeled through CPI's larger corporate structure. This can present both opportunities and challenges for the regional market. While the integration promises greater capacity for large projects, it also means one less major independent player, potentially intensifying competition for remaining local firms vying for subcontractors and talent.

Integrating Talent and Seizing Opportunity

Central to the success of the acquisition will be the effective integration of Four Star's team. CPI has explicitly welcomed Four Star's leadership, including Robert Loudermilk, Brock Lodge, and Clint Hensley, into the fold. This retention of key personnel is crucial for maintaining project continuity, client relationships, and the operational knowledge that made Four Star a valuable target in the first place.

The combined entity under Pavement Restorations, Inc. aims to create a more formidable force in the region, capable of handling a wider array of complex projects. By merging CPI's resource and material supply advantages with Four Star's on-the-ground execution expertise, the company is making a calculated bet on its ability to become the contractor of choice for Nashville's future. As the city continues to build skyward and outward, the demand for the foundational work of paving and infrastructure will only increase, and Construction Partners, Inc. has now secured a much stronger position to meet it.