Primoris Services has agreed to acquire US-based energy infrastructure construction provider PLH Group in an all-cash deal valued at $470m in a move to expand its utility business.
PLH Group is a specialty construction company focused on utilities. The company’s concentration is in key fast-growing regions of the US.
Its services include power line construction, pipeline construction and maintenance, distribution and substation construction, specialised foundations, directional drilling, station and facility construction, and underground utility.
Primoris Services is a publicly-listed specialty contractor that offers critical infrastructure services to the utility, renewables, and other associated energy markets in the US.
Both PLH Group and Primoris Services are based in the Dallas-Fort Worth metroplex.
PLH Group CEO Peter Sandore said: “Primoris’ wide range of services allow us to offer new capabilities to our existing customers while we continue to advance our core values of safety, integrity, professionalism, and teamwork.
“Further, Primoris’ size and expanded footprint will give the PLH teams access to greater career mobility and more diverse job opportunities in the future.”
Through the acquisition, Primoris Services will almost double its power delivery business and boost its utilities segment to more than 50% of pro forma revenue.
It is also said to consolidate the company’s power delivery footprint in the five fastest-growing states in the US, thereby opening up more turnkey opportunities.
Besides, the deal will help expedite Primoris Services’ ongoing transition of its portfolio towards markets that have higher-growth, higher-margin, and recurring master service agreement (MSA) revenue.
Primoris Services president and CEO Tom McCormick said: “This acquisition aligns solidly with our strategic focus on higher-growth, higher-margin business segments.
“It expands our footprint for Power Delivery services at a time when improvement and expansion of our domestic electric grid is driving massive capital investment in this market.”
The deal, which is subject to regulatory approvals and other customary conditions, is anticipated to close in Q3 2022.
