Tutor Perini Corp. late Thursday announced a major expansion into the civil construction market in the Midwestern United States with the acquisition of two transportation-related construction firms in Wisconsin and Indiana.
After the markets closed, the Sylmar general contractor said it has signed a letter of intent to acquire 100 percent of the stock of civil contractor Lunda Construction Co. of Black River Falls, Wis. Lunda is one of that state’s oldest and largest companies specializing in the construction, rehabilitation and maintenance of bridges, railroads and dams.. The deal is valued at more than $153 million, with a structured three year, earn-out based on hitting certain profitability targets.
Lunda has three operating divisions located in six offices in Wisconsin and Minnesota and has worked in 30 states across the United States. It employs 600 employees and has a current backlog of around $400 million. Revenues were about $400 million in 2010. Lunda will continue to operate under the current company name and be managed by its current senior management team, led Chief Executive Larry Lunda.
Tutor Perini separately announced the purchase of Evansville, Ind. tunnel construction company Frontier-Kemper Constructors Inc. for $61 million. it also assumed $52 million in debt, $35 million of which was paid off at closing. Tutor Perini said it used proceeds from a senior note sale last year to pay for the deal.
Frontier-Kemper employs more than 600 people and has offices in Pelham, N.Y., and Seattle, Wash., Revenues in fiscal year 2010 were approximately $148 million, and it has a current backlog of around $300 million. The company will continue to operate under the current company name and to be managed by its current senior management team, including Chief Executive W.D. Rogstad.
“Lunda Construction is one of the most successful civil contractors in the United States and represents our expansion into the Midwestern markets,” Chief Executive Ron Tutor said in a statement. “Frontier-Kemper is an ideal fit for our civil business and will significantly bolster our tunneling business in the United States and expand our reach into Canada.”
Shares earlier closed up 18 cents, or less than 1 percent, to $19.42 on the New York Stock Exchange.
