Alexander & Baldwin Inc. (A&B) (NYSE: ALEX) is buying Grace Pacific Corp. for $235 million.

The purchase is made up of 85 percent stock and 15 percent cash. A&B is also assuming $42 million in debt through the deal.

Grace is an infrastructure company headquartered in Kapolei, Hawaii. The company focuses on providing aggregate, hot mix asphalt and road construction and paving services.

Honolulu-based A&B has also been involved in building communities in Hawaii, and says that the deal should extend its infrastructure development capabilities. The buyer develops real estate and agriculture in Hawaii, and says it is the state’s fourth-largest landowner.

Two of A&B’s executives own shares in Grace ‑ Walter Dods, an A&B director, owns 12 percent, and Jeff Watanabe, also a director, owns 1 percent.

The infrastructure outlook in Hawaii is positive, and Honolulu City & County has announced it plans to conduct $120 million to $150 million in road repairs in the next five years, the company says in a statement.

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