Primoris Services To Buy PLH Group In Deal Valued At $470 Mln Cash
(RTTNews) - Primoris Services Corp. (PRIM) announced Monday that it has entered into a definitive merger agreement to acquire PLH Group, Inc. in an all-cash transaction valued at $470 million.
Primoris, one of the top specialty contractors in the U.S., provides critical infrastructure services to the utility, renewables and other related energy markets.
PLH Group is a utility-focused specialty construction company with concentration in key fast-growing regions of the U.S.
The proposed deal nearly doubles the Power Delivery business and increases Primoris' Utilities segment to over 50 percent of pro forma revenue. It also aligns solidly with Primoris' strategic focus on higher-growth, higher-margin business segments.
Primoris will fund the deal through borrowings under its existing credit agreement. Certain members of Primoris' existing lender group have committed to provide $425 million of incremental term loans.
Primoris expects annual cost savings of at least $10 million from cost initiatives within 24 months after the close of the transaction. It also expects double-digit earnings per share accretion within 12 months with material cost and revenue synergies.
The transaction, unanimously approved by the Boards of Directors of both Primoris and PLH Group, is expected to close in the third quarter of 2022. The transaction is dependent on the receipt of regulatory approvals and other customary closing conditions.
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