DALLAS, May 30, 2017 (GLOBE NEWSWIRE) -- Primoris Services Corporation(NASDAQ:PRIM) ("Primoris" or "Company") today announced that it has acquired the assets of Florida Gas Contractors ("FGC"). Based in Dade City, Florida, FGC is a utility contractor specializing in underground natural gas infrastructure.
For the year ended December 31, 2016, FGC generated operating income of $4.9 million on revenue of $29.5 million. Most of FGC's revenue was derived from Master Service Agreements (MSA) with its utility customers.
Total consideration was approximately $33 million paid in cash at closing. An incentive provision can provide an additional $1.5 million to the Sellers if FGC achieves $4.95 million EBIT (as that term is defined in the asset purchase agreement) for the twelve month period ending May 26, 2018.
FGC will operate as Primoris Distribution Services, part of Primoris' Utilities and Distribution segment. Kevin Bohne, President, and Dave Runyan, Vice President - Operations, will continue to manage FGC day-to-day operations. FGC has
been in the underground utility business since 1989 providing installation, maintenance, and upgrade services to the three largest gas utilities in Florida. These services have included open trenching, joint trenching, gas main and service lines, engineering design and permitting, directional boring, and ground penetrating radar.
David King, Primoris President and CEO, commented, "The acquisition of Florida Gas Contractors expands the geographic reach of our Utilities and Distribution segment with work similar to that we perform in the Midwest and California. We see opportunities for long-term growth in the utility market as our customers replace an aging gas infrastructure system. With FGC we look forward to expanding our presence in the Florida and Southeast
Founded in 1960, Primoris, through various subsidiaries, has grown to become one of the largest publicly traded specialty construction and infrastructure companies in the United States. Serving diverse end-markets, Primoris provides a wide range of construction, fabrication, maintenance, replacement, water and wastewater, and engineering services to major public utilities, petrochemical companies, energy companies, municipalities, state departments of transportation, and other customers. Growing both organically and through acquisitions, the Company's national footprint now extends nearly nationwide and into
Canada. For additional information, please visit www.prim.com.
FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking statements, including with regard to the Company's future performance. Words such as "estimated," "believes," "expects," "projects," "may," and "future" or similar expressions are intended to identify
forward-looking statements. Forward-looking statements inherently involve known and unknown risks, uncertainties, and other factors, including without limitation, those described in this press release and those detailed in the "Risk Factors" section and other portions of our Annual Report on Form 10-K for the period ended December 31, 2016, and other filings with the Securities and Exchange Commission. Given these uncertainties, you should not place undue reliance on forward-looking statements. Primoris does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Director of Investor Relations
Source: Primoris Services Corporation
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