ConDig (29-Mar-18). Dallas, Texas-based construction and infrastructure company Primoris Services Corp is set to acquire Willbros Group Inc for an enterprise value of about $100 million.
The deal will see Primoris snap up Houston specialty energy infrastructure contractor Willbros Group just a week after Willbros unveiled plans to put it up for sale and even mulled bankruptcy.
Primoris expects the acquisition to strengthen its business and bolster revenues as well as profitability.
Under the deal, Primoris will pay 60 cents per share to buy all outstanding shares of Willbros and will settle existing debt obligations. Primoris will provide up to $20 million of bridge financing to Willbros to support its working capital requirements until the closure of the deal. It also intends to finance the transaction through cash and existing credit facilities.
The acquisition is expected to close during the second quarter of this year.
Upon completion of the transaction, Primoris said it expects the Willbros UTD business to become a new operating division, Primoris UTD, which continues Primoris’ strategic plan for growing its master service agreement revenue base.
Primoris anticipates that Willbros’ lineal oil and gas operations will be incorporated into Primoris’ utilities and distribution division, the Houston-based oil and gas facilities operations will become part of Primoris’ pipeline and underground operation, and the Canadian business will become part of its power, industrial, and engineering division.
“We are excited about the opportunities that this acquisition provides Primoris both in the near and long term. Consistent with our strategic priority of expanding our diverse capabilities through disciplined acquisitions, we believe that the acquisition will provide enhanced returns for our stockholders and can be accomplished without placing stress on our balance sheet,” said David King, president and chief executive officer of Primoris.
“We look forward to working with the Willbros employees, customers, and vendors as we provide resources and support as part of our larger organization, with the goal of accelerating our combined company’s growth. Both companies share a common goal of ensuring a safe working environment and providing superior customer service.”
Earlier this month, Primoris Services Corp landed a $40 million deal for a new solar plant in West Texas.
The company recently posted net income of $22.5 million for the quarter ended December 31 compared with $14.5 million in the same in 2016.