Business
Sterling Announces Agreement to Acquire CEC Facilities Group
Acquisition Expands Suite of E-Infrastructure Services into Mission-Critical Electrical Contracting Conference Call with Accompanying Slide Deck: June 17,
About this update from Sterling Infrastructure, Inc.
[{"type":"text","content":" Acquisition Expands Suite of E-Infrastructure Services into Mission-Critical Electrical Contracting \nConference Call with Accompanying Slide Deck: June 17, 2025 at 11:00 AM ET/ 10:00 AM CT\nTHE WOODLANDS, Texas, June 17, 2025 /PRNewswire/ -- Sterling Infrastructure, Inc. (NasdaqGS: STRL) (\"Sterling\" or \"the Company\") today announced that it has signed a definitive agreement to purchase substantially all of the assets of Irving, Texas-based CEC Facilities Group, LLC (\"CEC\") a leading specialty electrical and mechanical contractor. The upfront purchase price at closing totals $505 million, consisting of $450 million in cash (subject to certain adjustments) and $55 million in Sterling Common Stock. Additionally, CEC has an earn out opportunity contingent upon achieving certain operating income targets through December 31, 2029. The Boards of Directors of both companies have unanimously approved the transaction. CEC will join Sterling's E-Infrastructure Solutions segment. The transaction is expected to close in the third quarter of 2025, subject to customary closing conditions including the expiration or termination of the waiting period under the Hart-Scott-Rodino Act.\n\n \n \n \n \n \n \n\n \nStrategic Transaction Highlights\nCEC is a leading, non-union electrical contractor to high-growth, mission-critical markets.CEC delivers comprehensive design, engineering, installation, and maintenance services for complex electrical infrastructure across high growth sectors.Electrical services accounted for over 80% of CEC's 2024 revenue.Over 80% of CEC revenue and backlog comes from mission-critical end markets including semiconductor (its largest end market), data center, and manufacturing.The transaction expands Sterling's suite of high-value E-Infrastructure services into the next critical phases of project lifecycle.CEC's electrical offering is highly complementary to Sterling's current E-Infrastructure services.CEC's service offerings extend to ongoing maintenance, retrofit, and upgrade needs, allowing Sterling to touch the full project lifecycle.Significant opportunity to cross-sell services across complementary customer base and geographic footprint.Opportunity to leverage Sterling's established track record in the data center market and CEC's established track record in the semiconductor market.CEC has a strong presence in...