Sterling Construction Will Acquire Plateau Excavation In $400M Deal
The deal is expected to close near the end of the third quarter of 2019.
Sterling says it plans to finance the transaction and replace its current borrowing facility with a new $400 million term loan together with a $75 million revolving credit facility, for which it has received a financing commitment from BMO Harris Bank N.A., and its available cash balance.
"Sterling's acquisition of Plateau aligns directly with our strategic growth plan as it meets our key criteria of expansion into adjacent markets, diversification of revenue sources and customer base, and enhancement of our overall margin mix while reducing our risk," said Joe Cutillo, Sterling's CEO.
"Plateau is a transformational acquisition in that it not only complements our core heavy civil construction and commercial concrete businesses, but also gives Sterling access to new geographies and rapidly growing end markets. Given the similarities in project execution experience and capabilities, and the opportunity to leverage both our existing fleet of equipment and current geographic footprint, we are highly enthusiastic about Plateau's ability to drive increased value for our shareholders."
Sterling Construction Company shares are trading down 9.64% to $10.22 at time of publication. The stock has a 52-week high of $15.75 and a 52-week low of $9.71.
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