Business
Sterling Construction Completes Acquisition of Plateau Excavation, Inc. and Enters Into New Credit Agreement
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 completed the previously announced acquisition of Plateau Excavation, Inc. and its related entities (collectively “Plateau”), a leading specialty contractor based in Austell, GA, for $400 million; $375 million in cash and $25 million in Sterling Common Stock and seller notes. The Company also announced that it has replaced their existing $85 million term loan with a new $475 million Credit Agreement led by BMO Capital Markets Corp., as Joint Lead Arranger and Joint Book Runner, and BMO Harris Bank N.A., as Administrative Agent.\n\n\nPlateau serves large, blue-chip customers in the e-commerce, data center, distribution center, warehousing, and energy sectors. They are a leading provider of large-scale site infrastructure improvement contracting services and are the largest excavating contractor in the Southeastern U.S. Plateau has approximately 800 employees throughout its region of operation. Plateau’s leadership team, including founder and CEO Greg Rogers and COO Brad Carroll will remain with the company.\n\n\n“We are extremely excited to complete this acquisition and begin work with Plateau and their management team,” said Joe Cutillo, CEO of Sterling. “This acquisition is yet another step in the transformation of Sterling Construction and it directly aligns with our strategic vision, with a focus on both margin and adjacent market expansion. Not only does Plateau operate in an exciting and quickly growing market segment, but they also have a demonstrated culture of success and profitability that aligns with our key tenets of bid discipline and a focus on bottom-line growth. The new combined company also allows us to capitalize on new geographies in a rapidly growing Southeastern United States, as well as the ability to leverage some of our own equipment for new Plateau endeavors in the Texas area. We expect the acquisition to be immediately accretive, and we will update our guidance to reflect this during our third quarter earnings call. We are looking forward to capitalizing on the opportunities Plateau adds to our operating portfolio as we endeavor to drive profitable growth and increased shareholder value in 2020 and beyond.”\n\n\nCredit Facility\n\n\nThe Plateau acquisiti...