THE
WOODLANDS, Texas, Nov. 16,
2023 /PRNewswire/ -- Sterling Infrastructure, Inc.
(NasdaqGS: STRL) ("Sterling" or "the Company") today announced that
it has acquired Professional Plumbers Group, Incorporated (PPG),
headquartered in Wylie, Texas. PPG
serves a range of residential home builders in the greater
Dallas area and will join
Sterling's Building Solutions segment.
Acquisition Highlights
- Purchase price consists of a cash payment of $50 million and an earnout opportunity
contingent upon achieving future EBITDA targets
- Annual revenues of $50 to
$55 million
- Strong, accretive margin profile
- Customary outsourced labor model
- PPG provides all the major plumbing phases for new residential
builds, expanding Sterling's suite of residential services in the
Dallas market to the next critical
phase of the build once the slab is complete
- Complimentary customer base with opportunity to cross-sell
services
"We are thrilled to have the PPG family join the Sterling team.
PPG is a premier provider of plumbing services to home builders in
one of the Nation's top residential markets. The company has
extremely strong relationships with its customers and a history of
excellent execution and profitability," stated Joe Cutillo, Sterling's Chief Executive Officer.
"With this acquisition, we not only broaden our services and
customer base, we also become even more valuable to residential
builders as a full-service concrete slab and plumbing provider. We
welcome PPG to our team and believe their strong values, commitment
to customers, and entrepreneurial spirit align perfectly with
Sterling."
About Sterling
Sterling Infrastructure, Inc.,
("Sterling," "the Company," "we," "our" or "us"), a Delaware corporation, operates through a
variety of subsidiaries within three segments specializing in
E-Infrastructure, Transportation and Building Solutions in
the United States, primarily
across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain
regions and Hawaii.
E-Infrastructure Solutions provides advanced, large-scale site
development services for manufacturing, data centers, e-commerce
distribution centers, warehousing, power generation and more.
Transportation Solutions includes infrastructure and rehabilitation
projects for highways, roads, bridges, airports, ports, rail and
storm drainage systems. Building Solutions projects include
residential and commercial concrete foundations for single-family
and multi-family homes, parking structures, elevated slabs and
other concrete work. From strategy to operations, we are committed
to sustainability by operating responsibly to safeguard and improve
society's quality of life. Caring for our people and our
communities, our customers and our investors – that is The Sterling
Way.
Joe Cutillo,
CEO, "We build and service the infrastructure that enables our
economy to run,
our people to move and our country to grow."
Important Information for Investors and Stockholders
Cautionary Statement Regarding Forward-Looking Statements
This press release contains statements that are considered
forward-looking statements within the meaning of the federal
securities laws. These forward-looking statements are subject to a
number of risks and uncertainties, many of which are beyond our
control, which may include statements about: our projections or
expectations relating to synergies and other benefits from the
transaction; our business strategy; our financial strategy; our
industry outlook; and our plans, objectives, expectations,
forecasts, outlook and intentions. All of these types of
statements, other than statements of historical fact included in
this press release, are forward-looking statements. In some cases,
forward-looking statements can be identified by terminology such as
"may," "will," "would, "could," "should," "expect," "plan,"
"project," "intend," "anticipate," "believe," "estimate,"
"predict," "potential," "pursue," "target," "continue," the
negative of such terms or other comparable terminology. The
forward-looking statements contained in this press release are
largely based on our expectations, which reflect estimates and
assumptions made by our management. These estimates and assumptions
reflect our best judgment based on currently known market
conditions and other factors. In addition, management's assumptions
about future events may prove to be inaccurate. Management cautions
all readers that the forward-looking statements contained in this
press release are not guarantees of future performance, and we
cannot assure any reader that such statements will be realized or
the forward-looking events and circumstances will occur. Although
we believe such estimates and assumptions to be reasonable, they
are inherently uncertain and involve a number of risks and
uncertainties that are beyond our control, including the
possibility that the anticipated benefits from the transaction
cannot be fully realized or may take longer to realize than
expected, and the possibility that the costs or difficulties of
integration of the acquired business will be greater than expected.
Actual results may differ materially from those anticipated or
implied in the forward-looking statements due to such factors as
well as the other factors included in the "Risk Factors" section in
our filings with the U.S. Securities and Exchange Commission and
elsewhere in those filings. Additional factors or risks that we
currently deem immaterial, that are not presently known to us or
that arise in the future could also cause our actual results to
differ materially from our expected results. Given these
uncertainties, investors are cautioned that many of the assumptions
upon which our forward-looking statements are based are likely to
change after the date the forward-looking statements are made. The
forward-looking statements speak only as of the date made, and we
undertake no obligation to publicly update or revise any
forward-looking statements for any reason, whether as a result of
new information, future events or developments, changed
circumstances, or otherwise, notwithstanding any changes in our
assumptions, changes in business plans, actual experience or other
changes. These cautionary statements qualify all forward-looking
statements attributable to us or persons acting on our behalf.
Investor Relations Company Contact
Sterling
Infrastructure, Inc.
Noelle Dilts, VP IR and Corporate
Strategy
281-214-0795
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SOURCE Sterling Infrastructure, Inc.