secwatch.observer — SEC 8-K summary
======================================

Issuer:     Cardinal Infrastructure Group Inc. (CDNL)
CIK:        0002079999
Form:       8-K
Filed at:   2026-10-19T12:59:14+00:00
Accession:  0001193125-26-424737
Event type: m_and_a
Sentiment:  positive
Materiality: 0.75
Item codes: 1.01, 3.02, 7.01, 9.01
LLM model:  deepseek-v4.1-flash:cloud@v2

Cardinal Infrastructure to buy Hughes Brothers Construction for $357.5M in 60% cash, 40% stock
--------------------------------------------------------------------------------

- Purchase price $357.5M: $214.5M cash plus 5,255,420 CDNL Class A shares at a $27.21 issue price (based on 33-day VWAP through Oct 14, 2026).
- Hughes Brothers, a Wildwood, FL heavy civil and site contractor, posted TTM revenue of $220M at a 25% adjusted EBITDA margin as of June 30, 2026, with ~$350M backlog.
- Earnout up to $162.5M based on 12 months ending June 30, 2027, payable 60% cash/40% stock; at maximum adds ~2,388,827 shares, total value ~$455M.
- Closing expected Q4 2026, subject to HSR clearance; cash funded from cash on hand and existing credit facility; proforma net leverage 1.4x vs 2.5x target.
- Co-founders Chad Hughes (President) and Justin Hughes (VP) will continue to lead the business; 500+ employees; sellers' shares subject to 180-day lock-up.

Source:
  EDGAR index:    https://www.sec.gov/Archives/edgar/data/2079999/000119312526424737/0001193125-26-424737-index.htm
  Primary doc:    https://www.sec.gov/Archives/edgar/data/2079999/000119312526424737/cdnl-20261013.htm
  HTML page:      https://secwatch.observer/filing/0001193125-26-424737

License: Source filings: public domain (SEC EDGAR). Summaries (headline + bullets): CC-BY-4.0; attribute https://secwatch.observer