Primoris snaps up Florida Gas Contractors

ConDig (30-May-17).  Construction and infrastructure company Primoris Services Corp has acquired Florida Gas Contractors (FGC) for about $33 million cash.

FGC, based in Dade City, is a utility contractor specializing in underground natural gas infrastructure.

Under the deal, Primoris said an incentive provision can provide an additional $1.5 million to the sellers if FGC achieves $4.95 million earnings before interest and taxes for a twelve month period ending May 26 2018.

The Dallas, Texas-based company said that FGC will operate as Primoris Distribution Services, which will be part of its utilities and distribution division.

Kevin Bohne, president, and Dave Runyan, vice president – operations, are set to continue to manage FGC’s day-to-day operations.

FGC generated operating income of $4.9 million on revenue of $29.5 million last year, with most of the company’s revenue driven from master service agreements with utility customers.

“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,” said David King, Primoris president and ceo.

“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 markets.”

FGC has been in the underground utility business since 1989 providing installation, maintenance, and upgrade services to the three largest gas utilities in Florida.

Earlier this month, Primoris secured a $21 million three-year contract to install gas lines in Iowa.