(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 leading specialty contractors in the United States, provides critical infrastructure services to utility, renewable energy and other related energy markets.
PLH Group is a utility-focused, specialty construction company focused in key, fast-growing regions of the United States.
The proposed deal nearly doubles the Power Delivery business and boosts Primoris’ Utilities segment to over 50% of pro forma revenue. It also aligns firmly with Primoris’ strategic focus on higher growth, higher margin business segments.
Primoris will finance the operation by borrowings under its existing credit agreement. Select members of Primoris’ existing group of lenders have pledged to provide an additional $425 million in term loans.
Primoris expects annual cost savings of at least $10 million from cost initiatives within 24 months of closing the transaction. It also expects double-digit earnings per share growth within 12 months with significant cost and revenue synergies.
The transaction, unanimously approved by the boards of directors of Primoris and PLH Group, is expected to close in the third quarter of 2022. The transaction is subject to receipt of regulatory approvals and other customary closing conditions.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.