Granite To Sell Inliner For $159 Mln, Plans To Divest WMS; Authorized Increased Share Buyback

(RTTNews) - Granite Construction Incorporated (GVA), an infrastructure provider, on Thursday announced the signing of a deal to sell its Inliner business for $159.7 million, plans to divest two businesses, and raise its share buyback program, from $157 million to $300 million.

The new measures are aimed at to boost its growing core civil construction and materials business of the company.

The California-headquartered Granite inked an agreement with Inland Pipe Rehabilitation, a portfolio company of investment affiliates of J.F. Lehman & Company, to sell its trenchless and pipe rehabilitation services business, Inliner for $159.7 million.

The transaction is expected to close in the next two to four months.

As part of its new strategy, the company expressed its intention to divest the two remaining businesses within the Water and Mineral Services (WMS) operating group, Water Resources and Mineral Services. As a result, WMS will be considered held for sale and presented as discontinued operations as of December 31, 2021.

Kyle Larkin, Granite CEO, commented: "The divestiture of Inliner and the planned divestitures of Water Resources and Mineral Services reflect our strategy to refocus on our core civil construction and materials business, streamline operational support functions, improve overhead efficiency and better leverage economies of scale..."