Lindy Paving doubles number of plants to 7
Lindy Paving Inc. said Tuesday it is now the largest asphalt producer in the Pittsburgh region with the purchase of four plants from IA Construction of Franklin, Pa., expanding its total to seven. Terms of the transaction were not disclosed.
While the additional plants should give Lindy the ability to lower prices and win more paving contracts, the company is unlikely to dominate the market because it will control only about one-fifth of the region's production facilities, an industry expert said.
"There are still some large firms out there," said Gary Hoffman, executive director of the Pennsylvania Asphalt Pavement Association, a Harrisburg trade group. "PennDOT is still going to see a good number of bids."
There are more than 30 PennDOT-approved asphalt plants in the Pittsburgh region, according to the association.
"The additions will expand our capabilities and reach here in Western Pennsylvania, and we are excited about the potential for the added plants and the quality people who come to us with the purchase," said Vince Tutino, Lindy Paving president, in a statement. Company executives declined to comment further.
Robert Ponton, an IA Construction vice president, said, "It strengthens Lindy Paving's business in Southwest Pennsylvania and allows IA to reposition our assets within our company." It is owned by Barrett Paving Materials Inc. in Roseland, N.J. Barrett officials could not be reached for comment.
After the acquisition of plants in Homer City, New Kensington, Zelienople and West Pittsburg, Lindy owns seven plants, including its previously owned plants in Pittsburgh, Neville Island and New Castle. IA Construction still owns five others, and Lane Construction Inc. of Cheshire, Conn., owns five plants here.
Lindy Paving is part of a group of construction companies -- including PJ Dick, a general contractor and manager, and Trumbull Corp., a road construction contractor -- controlled by the Clifford R. Rowe Jr. and Jane D. Burton families.
Trumbull and Lindy are involved in several large road projects in the region, including two phases of the Veterans Bridge project worth $35.7 million, and Route 28 improvements worth $59.4 million, according to PennDOT.
In 2004, Lindy Paving purchased the city of Pittsburgh's asphalt plant in Highland Park and dismantled it. The company supplies the city with asphalt and has won street-paving contracts from the city in recent years.
Hoffman said the state's industry has been hurt by cuts in government funding for highway projects. Statewide, the value of government contracts has dropped by at least 30 percent since 2008, he said.
Private work for natural gas companies, which are required to fix roads damaged by their heavy trucks, has expanded, making up for some of the lost government work, Hoffman said. But business is down.
"With the economic volatility, it's not unusual to see acquisitions and mergers in an industry like the construction industry," he said.
