Raleigh-based Cardinal shares pop 30% after first acquisition since IPO

Shares of Raleigh-based Cardinal Infrastructure Group popped more than 32% in midday trading Thursday after announcing the acquisition of A.L. Grading Contractors, its first since becoming a public company Dec. 10.

Cardinal paid $245.5 million for the Atlanta area company, comprised of an $80 million extension of Cardinal’s existing credit facility, $116.9 million in equity and $48.6 million in cash, with the equity consideration subject to a six-month post-closing lockup, according to an SEC filing.

Cardinal had about 1,335 employees before adding A.L. Grading, which has more than 300 employees and had an approximate revenue of $160 million last fiscal year. Cardinal had revenue of $187.9 million in the first six months of 2025, and about $315.2 million in revenue in 2024.

Cardinal shares traded at a record high of $33 on Thursday after its initial public offering price of $21, an increase of 57%. The IPO raised about $241.5 million. Acquisitions account for about 27% of Cardinal’s growth since CEO Jeremy Spivey founded the company in 2013, according to SEC filings.

Cardinal shares were up 33% on the day or more than $8 midday. Cardinal’s market capitalization exceeds $1.2 billion. Cardinal plans to use proceeds from its IPO to grow its business and pay down debt, including a $122.1 million credit facility as of October, according to an SEC filing.

Cardinal has offices in Raleigh, Charlotte, and the Greensboro area, and a small office in South Carolina.

A.L. Grading President Lee Wood is expected to join Cardinal’s board. Vice President Benji Wood will assume the role of chief operating officer for Cardinal. A.L Grading CFO Rick Leeson will remain in his role.