Primoris Services Corporation Acquires Assets of The Saxon Group
DALLAS--(BUSINESS WIRE)-- Primoris Services Corporation (NASDAQ Global Select: PRIM) ("Primoris" or "Company") today announced that its Primoris Energy Services subsidiary has acquired the assets of The Saxon Group, Inc. ("Saxon"). Based in Suwanne, Georgia, just outside of Atlanta, Saxon is a full service industrial construction enterprise with special expertise in the industrial gas processing and power plant sectors. For 2011, Saxon revenues were approximately $38 million from such projects as a new power plant and new natural gas compression facilities.
Total consideration was approximately $3.2 million, including a $2.5 million incentive provision based on Saxon achieving $4 million of EBITDA (as that term is defined in the asset purchase agreement) during the seven quarters that end June 30, 2014.
Formed in 1991, Saxon specializes in providing high-level mechanical, piping, and electrical services to clients in the power, industrial gas processing, and mid-stream energy markets. Saxon will operate as Saxon Construction, Inc. and will be a part of Primoris' East Construction Services segment. Current management, including Jeni Bogdon, President, Jim Short, EVP, and Keith Jeffries, VP, will continue to handle day-to-day operations. This management team has helped Saxon earn a solid reputation for safe, quality, cost effective construction execution.
Brian Pratt, Primoris Chairman, President and CEO, commented, ""The addition of Saxon's experience to that of our existing construction groups enhances our nationwide resources for industrial plant construction. We are very pleased we could add this new platform to better serve our power and process customers, especially those located in the Southeast United States."
Founded in 1946, Primoris, through various subsidiaries, has grown to become one of the largest specialty contractors and infrastructure companies in the United States. Serving diverse end markets, Primoris provides a wide range of construction, fabrication, maintenance, replacement, water and wastewater, and engineering services to major public utilities, petrochemical companies, energy companies, municipalities, and other customers. For additional information, please visit www.prim.com
FORWARD LOOKING STATEMENTS
This press release contains certain forward-looking statements, including with regard to the Company's future performance. Words such as "estimated," "believes," "expects," "projects," "may," and "future" or similar expressions are intended to identify forward-looking statements. Forward-looking statements inherently involve risks and uncertainties, including without limitation, those described in this press release and those detailed in the "Risk Factors" section and other portions of our Quarterly Report on Form 10-Q for the period ended June 30, 2012, and other filings with the Securities and Exchange Commission. Primoris does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Primoris Services Corporation
Peter J. Moerbeek, 214-740-5602
Executive vice President
Chief Financial Officer
Kate Tholking, 214-740-5615
Director of Investor Relations
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