Business
Sterling Acquires a Soil Stabilization Business in the Southeast
THE WOODLANDS, Texas--(BUSINESS WIRE)-- Sterling Construction Company, Inc. (NasdaqGS: STRL) (“Sterling” or “the Company”) today announced that it has
About this update from Sterling Infrastructure, Inc.
[{"type":"text","content":" THE WOODLANDS, Texas--(BUSINESS WIRE)--\nSterling Construction Company, Inc. (NasdaqGS: STRL) (“Sterling” or “the Company”) today announced that it has acquired Kimes & Stone (“Kimes”). Kimes provides a diversified services offering of soil stabilization for site development on e-commerce projects such as large fulfillment and distribution centers and data centers, as well as soil stabilization for roadways and manufacturing plant construction. The transaction includes a fleet of soil stabilization equipment and working capital, and provides an experienced and highly effective management team and workforce. Additionally, Sterling’s site development business has been Kimes’ major customer for the last several years.\n\nAcquisition Highlights\n\n\nAn all-cash purchase price of $7.6 million which equates to a purchase price multiple of 3 to 4 times EBITDA;\n\n\n\nProvides vertical integration for our specialty infrastructure services adding capacity, assets, and people;\n\n\n\nIncludes a broad range of high-quality private and public customers in rapidly growing end markets; and\n\n\n\nAdds to our geographic footprint throughout the Southeast region.\n\n\n“The addition of Kimes allows us to further broaden our e-infrastructure service offering to our key blue-chip customers throughout the southeast,” said Joe Cutillo, Sterling’s Chief Executive Officer. “Since our purchase of Plateau a little more than two years ago, we have seen a significant increase in demand for the superior performance of soil cement stabilization as opposed to the stone stabilization method. Kimes’ strong culture, equipment fleet, and solid competencies in soil cement stabilization will allow us to rapidly expand these capabilities into our existing and future geographic footprint.”\n\nAbout Sterling\n\nSterling Construction Company, Inc. operates through a variety of subsidiaries within three segments specializing in Heavy Civil, Specialty Services, and Residential projects in the United States (the “U.S.”), primarily across the southern U.S., the Rocky Mountain States, California, and Hawaii, as well as other areas with strategic construction opportunities. Heavy Civil includes infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, light rail, water, wastewater, and storm drainage systems. Specialty Services projects incl...